A phone call to my student loan servicer changed the way I saw my $28,000 debt, and spurred me to pay it off 7 years early

• I graduated college with $28,000 in student loans. My minimum student loan payment was $350 a month, which was 20% of my take-home pay.
• I called my student loan servicer to find out what would happen if I paid an extra $10 a month, and they told me it would take an entire year off my debt repayment. I couldn't believe it.
• I wanted to become debt-free as quickly as possible, and that moment changed how I started to approach money. It made me realize that how I spent my money, even just a few dollars, could alter my future for the better.
• I started changing the way I managed my money, and paid off my loans in three years instead of 10.
• Get a free quote from our partner SoFi to see how much money refinancing your student loans could save »

I graduated college with $28,000 in student loans. That may seem like pennies to some, but I wasn't exactly rolling in dough. As an entry-level newspaper reporter, $28,000 was also my starting salary.

When you're barely squeaking by month-to-month, it's easy to feel trapped by your debt. But as I soon discovered, a tiny change in approach - and mindset - was all it took to feel in control of my financial situation.

When I discovered $10 could make me debt-free

My minimum student loan payment was $350 a month, which was 20% of my take-home pay. After rent, gas, utilities, groceries and my loans, there was very little left over at the end of each month.

After reviewing my budget, I decided to put an extra $10 toward my student loans every month. It seemed like such a drop in the bucket, but I decided to call my student loan provider to see how much of a difference it would really make.

The customer service representative said paying an extra $10 a month would mean I'd pay my loans off in nine years instead of 10. I was amazed. I couldn't believe that a measly $10, the cost of a movie ticket, would have such a huge impact on my student loan timeline.

I wanted to become debt-free as quickly as possible, and that moment changed how I started to approach money. It made me realize that how I spent my money, even just a few dollars, could alter my future for the better.

I finally felt in control of my finances

After this revelation, I felt in control of my finances for the first time since graduating college. Instead of a prison, my debt felt like a weight that was slowing me down - and I finally understood how to lighten the load.

I decided to change my spendthrift ways, examining how often I turned to retail therapy whenever I felt sad or bored. Bad day at the office? That meant a trip to Urban Outfitters for a few items I may or may not wear. Missing my long-distance boyfriend? That meant buying a pint of Ben & Jerry's to eat in one sitting.

Now, becoming debt-free was my primary goal, and I was willing to do anything to get there.

I started letting go of my name-brand obsessions. Instead of going to Sephora for makeup and skincare, I found similar products at the drugstore. Instead of buying new books, I checked them out at the library. I printed out coupons and used Groupon at restaurants and salons. I also started trying to find ways to earn more money, like taking online surveys or joining new banks for the sign-up bonus.

My editor even let me start blogging about my personal finance journey for the newspaper's website. When I eventually got a new job, I started my own blog. Writing about money turned into my current full-time career.

That $10 sparked a lot of little changes, but most importantly it made me realize what was actually worth paying for. Back then, it was financial freedom and becoming debt-free. Now, it's traveling abroad and remodeling my home.

When I got a new job, I added the salary increase to my student loans. A year later, I moved in with my boyfriend and a mutual friend. By then, I was putting 50% of my take-home pay toward my debt. Three years after my first student loan payment, I became debt-free.

I nearly went too far in the other direction

After I saw what a difference $10 could make, I was determined to scrimp and save anywhere I could. Very quickly, I transformed from someone who cared about saving money to someone who was consumed by it.

I once spent 15 minutes agonizing over a Redbox movie rental trying to decide if I should spend $1 on a movie. Every dollar matters, I told myself.

I had a hard time allowing myself small indulgences like a 75-cent candy bar at the vending machine. I'd beat myself up for all my past money mistakes, constantly thinking about frivolous purchases I'd made years before.

My money obsession started to make me miserable. I refused to even buy things I knew would make me happy, like a gym membership or art classes. I was depressed and wanted to go back to therapy, but told myself it wasn't worth the cost.

I also avoided doing things with friends, like going out for drinks or seeing a concert. When anyone wanted to hang out, I would push for cheap activities or not join them.

Being hyper-aware of my financial situation also made me secretly envious of others around me. "Must be nice to not care about your student loans," became my constant internal refrain.

Even after I paid off my student loans, the stinginess persisted for years. It took a while to rid myself of the scarcity mindset I had developed.

Eventually, I reached a balance. I went back to therapy, let myself eat out with coworkers, and splurged on fun things. Now, five years after paying off my student loans, I finally have a healthy relationship with money.

Get a free quote from our partner SoFi to see how much money refinancing your student loans could save »

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