Debt and Finances: A story about money

I remember the day that my high school English teacher finished paying off his student loans. A few of us were sitting in the classroom waiting for the bell to ring. Mr. Forest sat at his desk typing away at his computer keys. After a minute, he pressed a button and met my eyes with a big smile. 

“I just made the last payment on my student loans!” he announced to the class of seniors. 

Most of us, confused, didn’t know how to respond, but a few of the smart kids congratulated him so we followed their lead. Most of us didn’t know the significance of the event, but one brave soul asked:

“Mr. Forest, how old are you?”

“43…” he answered quietly.

“And when did you take out your first loan?” another student chimed in.

“...18”

“25 years?! It took you 25 years to pay off your student debt? Is that normal?!” 

And to this, dear Mr. Forest mentioned something about a master’s and then added something like, “It’s different for everyone,” and “This is the price we pay to go to college,” and “Yes, this is normal.” Lucky for him, the bell rang shortly after that.

My Personal Financial Situation

As a person who has been traveling for the last 3 ½ years, I often get asked the question of affordability. I live modestly, often close to nature in remote places and I eat a vegan diet. My life doesn't cost that much, but honestly, I’m not satisfied with my current financial situation because I have debt. The first 2 years of travel, I lived debt free. The pandemic paused my student loans, I sold my car, and didn’t use my credit card. No one was asking me for anything. No bank was sending me reminders that my bill was due soon and how much interest I accrued. It was beautiful! Being debt free hits different, but unfortunately, I fell back into the trap.

“When Europeans don’t have money, they just don’t have money, but when Americans don’t have money, they put it on their credit card,” I overheard one woman say when I was in Portugal.

Huh… I never thought about that, but it made me feel guilty. At this time in my travels, I had somehow managed to accrue $2,000 USD on my credit card. 

How did that happen?

Well, I was planning to move to Spain and I got lazy. Towards the end of my time in Central America, I started running out of money and instead of finding income or doing a work exchange, I started living off my credit card… Yeah, wow, that seems so silly right now. Why did I do that?

Huh… I guess I was convinced that I would get a job and be able to pay it off easily. Which is true. Once I get a steady job and live somewhere, I will be able to pay it off easily. I guess I thought that because I’d be returning to the classroom, a full time position, I deserved some time to rest before everything changed.

But Europe was a beast in the beginning. I didn’t understand her and suddenly, that $2,000 turned to $3,000, turned to $4,000… well, $3,986. In Central America, it was easy to find a house sitting job, work under the table, or a volunteer exchange just by floating into a town with a genuine smile and good energy, but Europe was different… not to mention the visa restrictions. In Central America, I could stay in one place longer than the tourist visa because of border runs. Take a trip to the neighboring country and poof! Another 90 days in Costa Rica! But in Europe? In Europe it’s 90 days in and 90 days out. There are a few exceptions, but I only recently found out about them.

When I first arrived in Europe, I was wildly unprepared, embarrassed, and overwhelmed. I’d spent the last 6 months applying to international schools from Central America and another 2 months in Europe applying online or submitting my application in person. No one wanted to hire me because of the visa. “It’s really a shame,” one school replied, “You seem like a great fit. Please reach out to us if you ever have permission to work in Spain.” 

I was furious, but there was nothing I could do. After a few months, I got a job teaching English online, but the pay was low and I was already in the hole. I only spent money on the essentials (food, really). But when things got tight, the credit card seemed like my only lifeline. That mindset, plus the 17.4% interest rate really got me.

Why didn’t you just go home?

Yeah, no. I don’t know if you know this, but at home, people are swimming in more debt. Of course a few people aren’t, but between medical bills, student loans, and home and auto loans, it adds up. I didn’t want to go backwards. My Aunt Barbara suggested that I come home, work for a year, and then continue my travels, but I refused. I didn’t want to do this song and dance again. It’s just not the life that I want. Every time I go back to the US, I get sick. The food quality is terrible and I don’t fit into the consumer culture. The cost of living is high and the public transportation in most places is mediocre…

Of course there are exceptions and there are negative things about Europe too, but I don’t want to live in the US. Before I started traveling, I spent months researching other school districts to teach in and looking for a place that might feel right, but nothing did… nothing did. And maybe I didn’t know that I was a hippy yet or maybe I didn’t know what I was looking for, but in the last 4 years, the times I’ve felt the most at home are with European travelers. Most often, European hippies.  

Don’t you have student loans?

Yes. I’m not paying them. The loans will be discharged after I die. I’m not playing this game. The credit card debt, sure; that was my mistake, but to study? No. I don’t want to play. Especially because no one told me the rules. No one showed me another option and it’s just stupid. It seems like a cruel trick. Well, the jokes on you.

Principal amount : $18,500

Current amount owed : ??? (I can’t access my account from Turkey I guess).

Graduate students get unsubsidized loans (are charged interest while they study) so by the time I finished my master’s degree, the amount was about $20,800.

Plans for Redemption

A month ago, my credit card was hacked. Someone paid for a nice airbnb with it! I disputed the charge and the new card won’t get here in time for me to take it to Thailand. Honestly, I prefer it this way. I should’ve cut it sooner.

So now, I’ve got what I’ve got. 

I’m not the most financially intelligent person, but I know enough. My first goal is not to get any more debt. I will go to Thailand, spend 5 or 6 months in Asia, and then go back to the US. Surprised? Me too. I wasn't planning to go back to the US yet, but I discovered that I'll need to return to submit my visa to live in Spain. If I knew that before booking my flight to Thailand, I would've made a different decision. Oh well. I'm on this track now.

Either way, my health and happiness are my #1 priority. My health and happiness are more important to me than making money right now. In Asia, I'll reconnect with friends, visit temples, and practice meditation and non-attachment… I'll reconnect with nature and the divine tropical climate. I know that what I learn these next months will serve me well in the next chapter of life.

Money will come.

I’ll look for some work while I’m in Asia, but regardless of that, I have some savings and I’ve managed with no money before. Next summer, my priorities will shift and making money will become more precedent. I plan to work in the US, hopefully as a tour guide. After I'm accepted to NALCAP as a teaching assistant, I’ll be eligible for a visa to live in Spain. The teaching job is part time - my preference. I don't think I ever want to work just one job again in my life. To compensate, I’ll pick up other work teaching dance classes, selling my books, or doing something else.

Yeah, there's nothing to worry about. It's all going to be okay. I made the mistake of getting back into debt and now, I’ll undo that. I’ve got a plan and clear intentions. I'm disciplined. There's nothing to worry about. It'll work itself out.

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