2. Formulate a Debt Strategy

I’ve scoured the internet and books for a magic debt formula, and frankly…there’s not one.  I was able to categorize the advice into 2 main strategies:

A.      Strategy 1:  Pay as little as possible on debts through Income driven repayment (IDR) like IBR, PAYE, REPAYE.  You can go to the VIN foundation to plug your loan values in to see which results in the smallest cost.  This enables you to save more for retirement, and hopefully not just buy the latest and greatest phone. 

–       Pros: Save more money, might pay less on loans over lifetime, better lifestyle at the beginning of your career

–       Cons: gambling on forgiveness,  might have a huge tax bill at the end of forgiveness, might pay more on loans than a focused approach, live with the emotional burden of debt longer

–       ONLY a good choice if you can save money!  GREAT choice if you are planning a career of Public Service as you may qualify for public service loan forgiveness after 10 years of qualified work (if government keeps the PSLF program).

–       Tony Bartels is a proponent of strategy on the Vin Foundation

–       You can go on VIN and use the Student Debt Calculator (even if you are not a VIN member) to evaluate the cost of the different plans (IBR, PAYE, REPAYE)

•        https://www.vin.com/studentdebtcenter/

–       NOTE:  If this is your strategy, it makes more financial sense to invest extra money rather than throw it at loans.  If your income dramatically increases to the point it looks like you might actually pay off the loans, it may warrant re-evaluation of your debt strategy.  

2. Strategy 2:  Pay as much as possible on loans, save after you pay them off. 

–       Pros: get to “financial freedom” faster, can invest more of your income after debts are paid, if paid off with “gazelle intensity” may pay less interest over life of loan

–       Cons: delays saving for retirement, hard to make ends meet and have a family

–       Dave Ramsey promotes this via the “Debt Snowball,” a strategy that involves paying down the smallest debts first to get motivated.   As you pay off each debt, you apply the payments to the next loan.   He also recommends delaying saving for retirement until debts are paid.   (https://www.daveramsey.com/dave-ramsey-7-baby-steps)  The White Coat Investor  - Unless doing PSLF or loans with interest 1-3% (not your typical federal loans), goal is paying off student loans within 5 years.  “Live like a resident” for the first few years as an attending.

Consider when making a plan:

·        Does the thought of your loans growing every month for 20+ years cause you stress?

·        Are you able to trust that “forgiveness” will actually occur?  Or do you think our government will end IDR and forgiveness?

·        Are you disciplined enough to save for the tax burden at the end of the forgiveness?

·        Does the feeling of carrying debt make you crazy?

·        If paying off loans, will you still contribute to employer matched retirement plans (aka free money)?

·        If you commit to paying it off, and life throws you a BIG curveball, will you be able to switch payment plans later?  If you switch plans, it risks your interest capitalizing (ie, interest added to the principal to increase the future interest) and the payment countdown restarting to the new plan. 

·        IDR plans must be renewed yearly with the loan servicer.   If you lapse utilize forbearance the interest may compound!  If you have something unexpected (like job loss), consider having servicer recalculate your payment instead of applying for forbearance!  Your IDR payment could be 0 if your income is low enough!  Capitalization of loans depends on the individual type of payment plan you are on (IBR, PAYE, REPAE).  If you are considering one of these plans, it warrants further research to make sure you understand what you are getting into!

Consolidation

–       Combines several student/parent loans into one bigger loan.  “The interest rate on a consolidation loan is the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest 1/8 of a percent.” (http://www.finaid.org/loans/consolidation.phtml)

–       Pros:  one payment to one lender.  If you don’t already qualify, this can provide access to repayment plans other than the standard 10 year.

–       Cons: your overall interest rate may be higher! For my vet school loans, consolidation was of no benefit as all my loans have the same servicer and same interest rate. 

15 things I learned from The Gifts of Imperfection by Brené Brown

I woke up this morning to bright, spring sunlight streaming through the living room windows.   The shrilling, repetitive call of a cardinal sang outside.  A pair of them seem to be making a next outside of our window near the front bird feeder.  Sleep eluded me last night.  When my 2 year old son woke up, crawled into bed, and snuggled in his usual spot between Chase and I; I waited until he fell asleep before wandering down the hall.  My thoughts centered on a quote in The Gifts of Imperfection by Brené Brown.

“It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly.”- Theodore Roosevelt 

What is my arena?  What is my purpose?  I long to dare greatly, but I find myself unable to decide on an arena to dive into.  What a conundrum:  to be a goal-getter devoid of career oriented goals.  But maybe that's ok.   Although I grapple with the truth of my self-value, the truth remains:  my role as a mother and a wife are important.  What could be more important than raising children who love God?  Children who will dare greatly? Children who love others?
 Brene Brown refers to midlife and any other periods of great change (such as marriage, becoming a parent, retiring, moving, recovery, working in a soul-sucking job) as “great unraveling journeys.”
“The unraveling is a time when you are challenged by the universe to let go of who you think you are supposed to be and to embrace who you are.” 


I am on one of these journeys now.

Here are things I learned from The Gifts of Imperfection

• I am enough.  My value is not found in what I do or what I left undone.
• We all have “shame gremlins” that whisper or shout “not enough.”  There is power in naming and recognizing them.  I have shame gremlins that tell me I’m not enough as a mom… my house isn’t cleaning enough…I’m not thin enough…not smart enough…not a good veterinarian..  Sometimes they whisper in terms of comparisons…I wish I could write like her, look like her, or be as smart as her…
• When you recognize a shame attack, reach out to a confidant, a loyal, empathetic friend.  I am blessed to have 3 such friends who love me and my battles with insecurity.
• Boundaries are not mean.  They are necessary and part of being compassionate.  Is it better to constantly yell at my children and give in to frustration?  Or is it better to mean what I say and enforce boundaries the first time? Is it better to berate and belittle employees in an effort to get them to perform better? Or to set clear expectations and consequences then stick with them?  “How would our lives be different if there were less anger and more accountability? What would our work and home lives look like if we blamed less but had more respect for boundaries?” 
•  Fitting in is counterproductive in seeking true belonging and connection.  I don’t have  to keep up with the Jones's.  My 30 year old, dilapidated couch is just fine… or maybe it does need to be replaced because I hate it… not because I need to keep up appearances!
•    We cannot avoid shame, but we can develop resilience to it: “the ability to recognize shame, to move through it constructively while maintaining worthiness and authenticity and to ultimately develop more courage, compassion, and connection.”
• Secrecy, silence, and judgment are fertilizers for shame.
•  I long for the authentic life.  That is, I want to let go of who I think I should be, and simply embrace who I am…Of who God created me to be.  Keep it real, y’all! 
• We need to believe in something bigger than ourselves (Brené defines this as spirituality).  I find this need in my faith in God. 
•   Numbing is a behavior we engage in to not think, be it drinking, gaming, binge tv, or surfing Facebook.  Numbing blocks us from growing and facing vulnerability.    Wholehearted are “mindful about numbing behaviors” and try “to lean into the discomfort of hard emotions”
• Fear of loss or scarcity can inhibit feelings of profound joy. “The dark does not destroy the light; it defines it.  It’s our fear of the dark that cast our joy into the shadows.”  It is enough to be home and present with my children. I will strive to spend less time worrying and more time playing with them!
• Comparison is the thief of joy.
• When someone asks me “What do you do?” I don’t have to be just one thing.  I am a mother, a wife, a Christian, a watercolorist, a veterinarian, an instructor, and so much more!  I’m not bound by 1 title.  And that’s OK. I refuse to be defined by a single career.
•    Play and rest have value! It’s healthy to sit down, drink my coffee, and watch the birds with no goals other to enjoy the moment.  Perhaps that’s even better for me than a perfectly clean house.  This fits in with the concept of Sabbath.  We were created to have rest. 
•  Wholeheartedness is a journey, and it’s ok to not know the destination.  I will trust in the journey. 

I highly recommend reading The Gifts of Imperfection for yourself.  Join me on this journey to wholeheartedness. 

Peace and love, y’all!