Many Americans are struggling with debt going into the new year, and one family that paid off nearly $118,000 has some strategies that may help.
Amy Kroezen, 29, graduated in 2008 but couldn't find work fitting her degree in interior design from the Art Institute of Atlanta, according to U.S. News & World Report.
"I was turned down for job after job, and even advised to go wait tables by a design firm until the economy got better," she told the outlet.
Between Kroezen and her husband, a dance instructor and Australia native, the family owed around $116,000 in student loans and $2,000 in car payments.
"I had no idea how we were going to spend the next 10-plus years paying $990 a month in debt. How would we ever own a house, have a child and have any quality of life?" Kroezen remembered.
The couple decided to take charge of their debt and pay it off within four years, starting in April 2009. Their somewhat unusual plan was to use one income to live on and the other to chip away at their debt. They were each earning between $32,000 and $35,000 at the time, said U.S News & World Report.
Kroezen and her husband used several strategies that can help anyone trying to get out of debt. Some of their money-saving methods included downsizing, using an envelope system, paying the most expensive debt first and being as frugal as possible.
When they began living on one income, the couple moved to a less expensive apartment close to both of their jobs, which also saved money on gas. Kroezen turned her paycheck into cash, which was allocated to different envelopes for food, rent and other needs.
Kroezen has since paid off $103,168 of her student loan. She and her husband, who live in Nashville, have bought a home and put down a $20,000 down payment.
"We will attack the mortgage in the same way as the student loan, although we may take a month off and buy some clothing, which we haven't done in years," Kroezen said.
The couple have a daughter and another child on the way.
See Now: OnePlus 6: How Different Will It Be From OnePlus 5?
