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How I Repaid Debt: Making the Most of the Gig Economy

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How I Ditched Debt to make the most of an Gig Economy
The article was written by Amrita Jayakumar Writer The Washington Post Amrita Jayakumar is a former special assignments writer for NerdWallet. She also published a syndicated article on millennials and money, and covered personal loans and consumer credit as well as debt. Prior to that, she was an editor at The Washington Post. Her work was published on The Miami Herald and USAToday. Amrita has a master's diploma in journalism from the University ofMissouri.





Feb 5, 2019


Written by Kathy Hinson Lead Assigning Editor Personal financial, credit scoring, debt and money management Kathy Hinson leads the core personal finance team at NerdWallet. Prior to joining NerdWallet, she worked for 18 years with The Oregonian in Portland in capacities such as chief of the copy desk and team editor and designer. Prior experience includes news and copy editing for various Southern California newspapers, including the Los Angeles Times. She graduated with a bachelor's in mass communication and journalism in Iowa's University of Iowa.







The majority or all of the products we feature are from our partners, who pay us. This influences which products we review and the location and manner in which the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here's a list of and .



In this series, NerdWallet speaks to those who have overcome debt through a combination of dedication, budgeting and clever financial decisions. The responses have been edited to improve length and clarity.
Kara Perez has never had a full-time job. The 30-year-old entrepreneurial entrepreneur from Austin, Texas, juggled multiple part-time jobs in her 20s including catering, Nannying, to teaching high school lacrosse.
Perez graduated in 2011 with her English degree and more than $25,000 in student loan debt. Three years later "adulting" without a job offer to be found, she realized she couldn't afford to live with debt forever. "I realized: No one is going to save me. I must save myself from this life that I'm in," she says.
Perez decided to make profit from her gig economy life and kicked things into high gear by balancing five jobs while working 7 days a week. Every dollar she earned toward her debt.
Today, debt-free, Perez is the owner of her own company, named an event and financial education business that helps women learn how to manage their money. She shared her highs as well as lows to NerdWallet, and her story might inspire you to .
What was your total debt and income when you started?
I finished my degree in 2011 with little over $25,000 spread across five distinct loans. When I became really focused [on repaying debt at the end of 2014, I had about $18,000 left and I am earning $18,423.
How did you end up in debt?
I went to my first choice school , Wesleyan University. I come from a family with a single income, and taking out loans was always part of my plan.
What was the reason that led you to get out of credit?
Frankly, watching everyone around me go on with their lives and feeling as if I was drowning. I was in tears and panicking. I was applying for jobs, but had not been accepted. I was only three years out of college , and employed as a part-time caterer and 10 hours a week as a receptionist at an exercise facility.
My friends were on the road, getting real jobs or promotions and I was stuck.
When I first started studying about money], I had to get a pupil loan to cover six months, because I was unable to pay the monthly payments.
What steps did your take?
I made two changes that I did: I reduced everything to remotely feasible in my budget, and began to look for work. I was a driver for the high school team golf. I was a freelance writer for 12 dollars an hour on small blogs and the management of social media for freelancers.
I also got crazy frugal. I would bring food leftovers I had from catering job and eat them instead of purchasing groceries every few weeks.
(Perez had multiple roommates at the time]. My roommates were among my best friends, however they were all from wealthy backgrounds with no debt. Everyone was very accommodating; my friends would return home for dinner , instead of [making me] take me out to eat.
I'm still frugal -- I have a roommate and boyfriend, and I don't eat out too often.
>> MORE:
That must have been a hard juggling act.
I worked five different part-time jobs. I often had to work seven days a month. I was really burnt out towards the end however, I was extremely proud of myself.
Let me know about the debt avalanche technique to pay your loans.
There was one Federal loan at 6.8%; that was my highest interest rate. [ focuses on the debt with the highest interest.The loan with the highest interest rate. I put any extra money toward that debt, and then made the minimum payments on everything else.
Did your income change throughout the years?
Catering as well as the social media work I performed was paid hourly, which is why I requested more hours. I also worked to negotiate raises for my catering and nonprofit jobs, so that helped. I went from $12 an hour as a caterer to $15.50 in the time of the year. In 2015 (the year in which she paid off her debtI earned $32,249.63.
What would you have done differently?
Looking back, the biggest thing I would have done was start investing into my retirement accounts tandem with the repayment of my debt. I didn't begin investing until later, which was the time when my money could have grown in the bull market.
What are your future goals?
I'm a business owner and work full time. I'm also a very efficient saver. I'd like to accumulate enough money to make work be an alternative. In the last year, I saved 72% of my total income by using a to .
How do you eliminate your own debt
Make a budget to ensure that you can make money for debt, but also save for emergencies and tuck aside some to have fun. To accomplish this we suggest the where your expenditure is divided into wants, needs and savings, as well as the repayment of debt.
The debt avalanche technique used by Perez used is a more effective way to pay off debt since you lower interest rates, however, for those who want to win quickly it is also possible to try the and pay off your debt with the lowest amount first.
As Perez notes, is something that is able and should be considered in conjunction with the process of paying off debt.

Photo taken by Shane Henderson.



About the writer: Amrita Jayakumar is a former writer at NerdWallet. She has previously worked for The Washington Post and the Miami Herald.







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