In October 2011, Paulette Perhach, who wrote the viral blog post “A Story of a F*** Off Fund,” decided to face her debt head on. At the time, she had roughly $14,000 in student loan debt, a $145,000 mortgage, $1,500 in credit card debt, and what she calls “embarrassing debt” – more than $3,000 owed to her mom and her boyfriend.
Paulette felt like she was in over her head. “I was just really tired of feeling financially desperate,” she said. So she turned to what she knew: writing.
How writing helped her pay off debt
At the suggestion of a friend, Paulette started a blog to write about her experiences and keep herself accountable while paying off debt.
“I used a blog that I started with nerdy graphs to pay it off,” Paulette explained. “I gave the blog address to just a few people, and the only person who followed it was my best friends’ mom,” she said. She now continues that blog through the F*** Off Fund Monthly.
Having someone following her progress was enough to keep her motivated and on top of her debt. “Having a blog with charts made me really look at how my life was going. Posting it and having a friend look at it helped me stay accountable,” she said. “It was the tiniest thing, but I didn’t want to disappoint the friend who checked the blog,” Paulette explained.
Through writing and changing her habits, Paulette was able to knock out her credit card debt and “embarrassing debt” to her mom and boyfriend in July 2012. By October 2013, she paid off all of her student loans and sold her house.
Writing helped Paulette pay off her debt in two years, but it wasn’t the only thing she did to achieve debt freedom.
Strategies she used to get out of debt
Paulette started following Dave Ramsey, which helped give her an action plan to get out of debt. That included her student loans, which can so often be written off as the “good debt.”
“I would have otherwise just paid minimums on my student loans, I’m glad he convinced me to just knock them out,” she said.
Paulette also took on an extra job as a waitress, in addition to her 9-to-5 job. She worked Friday nights and one weekend morning to earn more and eliminate her debt faster.
She also focused on expanding her skill set. “I also continued to educate myself, especially in software and soft skills. There are all these skills that schools don’t really teach us,” she said.
She learned skills such as how to run a meeting, negotiation, and project management. Learning new skills helped bring value to what she had to offer, which gave her the confidence to go after the work she really wanted.
But one of her biggest motivations to get rid of debt and become financially smart was her career as a writer. Though she was blogging and writing to keep herself accountable, she knew she wanted to write for a living.
“I had a really bad history with money, always paying late fees and insufficient fund charges,” she said. “I knew I wanted to be a writer, so I realized that I had to be much smarter about money and set myself up to be able to live on a lower income.”
Overcoming bad habits, starting fresh
Though Paulette was able to use her blog to get out of debt and employed several strategies to reach debt freedom, it took a lot of work to overcome some bad money habits that were holding her back. It also required an honest look at herself to understand what would work and what would not.
“I had to know myself in order to make a plan for me,” she said. So Paulette ditched the credit cards, automated payments, and sent half of her rent with every paycheck.
She also acknowledged characteristics about herself, such as being impulsive, that affected her money management.
“I struggle in a world where I can order sushi delivered to my door by just hitting a few buttons,” she admitted.
Through commitment and self-discipline, Paulette worked through her bad habits so she could pay off debt.
Life after debt
Paulette admitted that while she was in debt, she did not have a “F*** Off Fund” like the one she wrote about. But once she paid off her debt and got her financial life together, things started to change. She didn’t have debt holding her back and could save her money.
“Once I paid off debt, it was like I could stop running from something bad and start running toward something better,” she said. “Debt had been like handcuffs – savings are like a jetpack.”
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1 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.89% APR (with Auto Pay) to 7.89% APR (with Auto Pay). Variable rate loan rates range from 2.47% APR (with Auto Pay) to 6.97% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of Month/Day/Year, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 08/21/18. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at firstname.lastname@example.org, or call 888-601-2801 for more information on ourstudent loan refinance product.
© 2018 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
2 Important Disclosures for Laurel Road.
Laurel Road Disclosures
APR stands for “Annual Percentage Rate.” Rates listed include a 0.25% EFT discount, for automatic payments made from a checking or savings account. Interest rates as of 11/8/2018. Rates subject to change.
Variable rate options consist of a range from 3.27% per year to 6.09% per year for a 5-year term, 4.64% per year to 6.14% per year for a 7-year term, 4.69% per year to 6.19% per year for a 10-year term, 4.94% per year to 6.44% per year for a 15-year term, or 5.19% per year to 6.69% per year for a 20-year term, with no origination fees. APR is subject to increase after consummation. The variable interest rate will change on the first day of every month (“Change Date”) if the Current Index changes. The variable interest rates are based on a Current Index, which is the 1-month London Interbank Offered Rate (LIBOR) (currency in US dollars), as published on The Wall Street Journal’s website. The variable interest rates and Annual Percentage Rate (APR) will increase or decrease when the 1-month LIBOR index changes. The variable interest rates are calculated by adding a margin ranging from 0.98% to 3.80% for the 5-year term loan, 2.35% to 3.85% for the 7-year term loan, 2.40% to 3.90% for the 10-year term loan, 2.65% to 4.15% for the 15-year term loan, and 2.90% to 4.40% for the 20-year term loan, respectively, to the 1-month LIBOR index published on the 25th day of each month immediately preceding each “Change Date,” as defined above, rounded to two decimal places, with no origination fees. If the 25th day of the month is not a business day or is a US federal holiday, the reference date will be the most recent date preceding the 25th day of the month that is a business day. The monthly payment for a sample $10,000 loan at a range of 3.27% per year to 6.09% per year for a 5-year term would be from $180.89 to $193.75. The monthly payment for a sample $10,000 loan at a range of 4.64% per year to 6.14% per year for a 7-year term would be from $139.65 to $146.76. The monthly payment for a sample $10,000 loan at a range of 4.69% per year to 6.19% per year for a 10-year term would be from $104.56 to $111.98. The monthly payment for a sample $10,000 loan at a range of 4.94% per year to 6.44% per year for a 15-year term would be from $78.77 to $86.78. The monthly payment for a sample $10,000 loan at a range of 5.19% per year to 6.69% per year for a 20-year term would be from $67.05 to $75.68.
However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the variable rate will decrease by 0.25%, and will increase back up to the regular variable interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.
3 Important Disclosures for SoFi.
4 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
5 Important Disclosures for CommonBond.
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown.
All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 2.28% effective October 10, 2018.
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|2.47% – 6.99%3||Undergrad & Graduate|
|2.46% – 6.97%1||Undergrad & Graduate|
|2.57% – 8.09%4||Undergrad & Graduate|
|3.02% – 6.44%2||Undergrad & Graduate|
|2.50% – 7.24%5||Undergrad & Graduate|
|2.79% – 8.39%6||Undergrad & Graduate|