Today I’m sharing an inspiring debt payoff update from Taylor. She’s a social worker tackling $277,000 in debt with plans to retire early. Taylor explains how she trimmed expenses, boosted income with side hustles, used house-hacking strategies, and qualified for an $88,000 student loan award. Enjoy!
We’re not debt-free yet.
At the time of writing, our remaining balance is $251,195.39 — all student loans.
This is the story of the strategies we used to pay off $28,026.02 so far and the goals we’re pursuing next.
Who are we?
My name is Taylor. I’m 29 and work as a medical social worker. I finished graduate school in 2018. In addition to my social work role, I work part-time as a social media coordinator. Between those jobs, my gross income is about $96,000.
I live with my husband, Bret. We’ve been together 11 years and married for three. He’s a full-time student and has been in graduate school since September 2020; he has about two years left. We love traveling, trying new restaurants, spending time with friends and family, and generally enjoying life.
I also run a blog called Social Work to Wealth where I share financial tips from my perspective as a social worker.
How did we get here?
Some background before the numbers and strategies. In 2012 we met in college. I was 18 and Bret was 22. Bret took a few years off school while I completed my bachelor’s. I relied entirely on student loans and didn’t pursue scholarships. Bret received some scholarships later and worked a summer job to cover housing, but still relied on loans for most tuition.
I didn’t carefully calculate how much loan money I really needed — I accepted the total offered. Looking back, I wish I had at least done the exercise to understand the real need.
We talked about money casually but never seriously planned to eliminate student loans. We assumed we would always have them and would simply pay the minimums. Life took us through many transitions: living apart during grad school, Bret returning to finish his bachelor’s, various jobs, and a post-baccalaureate program.
In 2019 Bret finished his post-bac and got accepted to grad school. We were newly engaged and saving for a July 11, 2020 wedding.
In March 2020 our wedding venue closed due to COVID-19. We canceled the large event, used the saved funds for a down payment on a house, and held a small intimate wedding with 18 close family members that included a hot-air balloon. We saved a lot personally and received generous help from family.
September 2020 brought a new job for me, Bret starting grad school, and settling into our new home in a new city. It was a huge year for us with many life changes.
From frugal to spenders
While saving for our wedding we were very frugal and put extra money toward the wedding fund. After the wedding and buying a house, we rewarded ourselves by spending more on dining out, experiences, and furnishing our home — even putting a $5,000 Hawaii trip on a credit card.
We didn’t maintain a strict budget. Bills were paid but credit card balances grew. Since I was the primary earner, we used some student loans for living expenses and the credit card debt rose.
The “wake-up call”
In December 2021 I went to breakfast with friends and learned about high-yield savings accounts (HYSA). I had never heard of them. That conversation sparked my deep dive into personal finance: books, blogs, podcasts, and success stories about paying off debt, responsible credit card use, investing, and early retirement. I became motivated to learn and change.
Bret was open to what I learned and we realized we’d been saying “yes” too often, buying whatever we wanted, and ending up with growing credit card debt and no savings. We learned that debt didn’t have to be permanent and that early retirement was a real possibility. We began reigning in spending and trying to be more mindful, but we still hadn’t made major changes.
We take on more debt
In April 2022 we decided to replace a rotting 15-year-old fence. A coworker suggested a home equity loan. We opened a $20,000 HELOC at about 4% interest and spent roughly $10,000 on the fence.
The second “wake-up call”
We love our fence, but after the project we questioned whether it was the right financial choice right then. Our PMI was removed without needing the fence, and we realized we needed a real plan: a budget, no more unnecessary debt, and a pause on using credit cards.
May 2022: Beginning of our debt payoff journey
We tracked our debt to measure progress. Our total was $277,721.41:
- $260,390.25 in student loans (combined)
- $10,676.24 HELOC (4% interest)
- $5,430.76 credit card spending — moved to HELOC to reduce interest
- $449 furniture (0% interest)
- $775.16 Peloton (0% interest)
July 2023: Current debt numbers
As of July 2023 our debt balance was $251,195.39 — all student loans — meaning we paid off $28,026.02 in 15 months. The balance could rise to about $255,000 once Bret receives a final loan disbursement.
We still have our mortgage, but we’re not prioritizing aggressively paying it down because the rate is 3%, we don’t see this as our forever home, and we may rent or sell it in the future.
Actions that helped us pay off $28,026.02 in 15 months
We found a budgeting method that worked for us
We realized I could cover household expenses alone if we committed to a stricter budget. We experimented with many budgeting systems and landed on a digital version of the envelope method combined with zero-based budgeting.
Our banking system includes four checking and two savings accounts (one short-term, one emergency fund). Checking accounts are designated for bills, food & miscellaneous, and two personal spending accounts. Having separate accounts gives clear visibility into category balances without tracking every expense in an app. We’re joint owners on all accounts and allocate funds monthly using a zero-based budget.
This system lets each of us have personal spending money guilt-free while keeping the larger budget organized.
Cut expenses and increased our income
We limited streaming services, reduced dining out, meal planned, and eliminated car payments. However, there was only so much to cut, so increasing income became essential.
Ways we increased our income
My income increase
I kept my social media manager role and continued dog-sitting. I’ve used platforms like Rover for about five years offering house sitting, boarding, and other services. I charge $65/night on Rover (netting about $52 after fees) and also take private clients for $40/night through referrals. It’s low maintenance and brings in a few hundred dollars monthly while letting me spend time with animals.
Bret’s income increase
Bret took a break from grad school and landed a summer job at an Alaska buying station, drawing on earlier experience he had working summers there. He worked eight weeks and we were able to put his entire paycheck toward debt since my income covered living expenses. It was also a meaningful experience for him and allowed me to visit Alaska.
House hacking
We began renting out a spare furnished bedroom and bathroom to traveling healthcare professionals and other temporary renters. We wanted short-term, furnished stays (30 days to six months) rather than a long-term roommate. After checking local regulations and market rents, we started at $900/month and increased to $995/month including utilities and internet. The deposit is one month’s rent with an additional $300 pet deposit.
We furnished the room affordably using IKEA and found a smart TV on a resale site. We list on platforms that cater to traveling healthcare workers and require a short video interview with prospective renters. For the lease we used state-specific templates to ensure compliance.
The room has been occupied 13 of the last 14 months and we’ve had four renters so far. The rental income has meaningfully contributed to our debt payoff while allowing us to meet interesting people.
Applied for in-state student loan help
I applied for the Oregon Behavioral Health Loan Repayment Program, which supports behavioral health providers from underrepresented communities or those who serve them. The program required proof of employment providing behavioral health services, detailed loan documentation, and essays about serving underserved communities.
I was awarded support with a two-year service commitment. The award totals roughly $88,000 in quarterly disbursements to apply toward student loans. So far I’ve received about $11,000 this year, and it has made a dramatic difference. I’m also pursuing Public Service Loan Forgiveness (PSLF) for additional relief.
Managing our mental health while paying off debt
As a social worker, I often think about how money and debt affect mental health. Financial stress can be overwhelming, and talking about money is still taboo for many. Sharing our journey is one way I hope to help others.
We aim for a sustainable plan rather than extreme deprivation. We still enjoy dining out and budget for personal spending, travel, and small pleasures. Our approach to sustainability includes:
- Continuing to dine out occasionally
- Budgeting for personal spending
- Setting realistic debt payoff goals
- Saving for travel
- Avoiding comparison with others’ timelines
- Tracking progress (we use Excel) to stay motivated
- Openly discussing our debt to avoid avoidance coping
- Reminding ourselves why we’re pursuing debt freedom
We could accelerate payoff by cutting all fun spending, but that wouldn’t be sustainable for us. We prefer steady progress while enjoying life.
Our debt payoff journey is not linear
Recently we took out $6,000 in student loans for Bret’s professional development. He has a tuition scholarship, but we decided conferences would benefit his growth. We carefully limited the amount borrowed, set aside the funds in a separate account, and only used what was needed. It’s a deliberate choice to balance progress with opportunities.
We’re focused on progress, not perfection. We’re learning to use money thoughtfully and treat it as a tool to reach our goals while enjoying life. When Bret starts working after graduation, our payoff pace will accelerate since we’ve proven we can live on my income alone.
Our plan going forward
Bret’s loans are currently deferred while he’s in school, so they’re not our immediate focus. With the loan assistance I receive, we can build savings. Our priority is an emergency fund of roughly $16,000 (about four months of expenses). Inflation and small unexpected costs have made this slow, but we’re making steady progress.
I prioritize contributing to my employer retirement plan up to the 6% match. Bret graduates in 2025, and after that we’ll integrate his loans into our repayment plan. Our target is to be debt-free by 2028. It will require discipline and persistence, but we believe it’s achievable.
We aim to keep learning, implementing better financial habits, and having transparent money conversations. I plan to continue sharing our journey to inspire and educate others.
Do you have debt? What are you doing to pay it off?
Taylor is a social worker and personal finance blogger at Social Work to Wealth, where she shares tips, resources, and lessons from her family’s journey to paying off $277,000 in debt and pursuing early retirement. Her goal is to empower social workers with financial education so they can have a healthier relationship with money. Outside of work and blogging, she enjoys traveling, gardening, trying new restaurants, and buying too many plants.