In the realm of personal finance, a haunting tale recently reached the ears of Caleb Hammer, a renowned YouTube finance guru. The tale belonged to Teryca Brooks-Long, a woman burdened with an overwhelming $250,000 in student loans. In a candid conversation for his YouTube series, Financial Audit, Caleb Hammer delved into the hardships endured by Teryca, leaving him stunned by the escalating debt fueled by interest fees and other charges.
As Brooks-Long poured her heart out to the personal finance expert, she revealed the demanding reality she faced. Juggling an impressive array of four jobs, she relied on her modeling and acting gigs as the primary source of income. However, the weight of her financial obligations forced her to take on additional roles, including an enrollment advisor for an online university, a virtual assistant for a realtor, and a position at an advertising agency.
Residing in San Antonio, Texas, Brooks-Long estimated her monthly earnings to be around $3,500. Despite her relentless efforts, half of her week was consumed by the strenuous demands of multiple jobs. “I’m always working,” she expressed with a heavy heart.
Yet, even with her tireless dedication, Brooks-Long’s income proved insufficient to chip away at her student loan debt. What began as a daunting $176,000 had snowballed into a staggering $250,000 due to accumulating interest.
During the video recording, Brooks-Long found herself obligated to allocate $1,694 each month towards her student loan payments, spreading across three different loans. Regrettably, this meant relinquishing the opportunity to truly savor life and enjoy the fruits of her labor.
Hammer’s analysis presented a grim reality to Brooks-Long: bankruptcy seemed inevitable. However, he offered a sobering reminder that student loans couldn’t be absolved through this legal recourse. He further warned her of the potential for her debt to spiral to half a million dollars and beyond, a fate she believed could materialize within the next two years.
Brooks-Long had amassed this colossal student debt while pursuing a degree in family and consumer sciences at Baylor University. Unfortunately, she encountered an obstacle when seeking federal loans due to a contested inheritance issue. Consequently, she was left with no choice but to resort to expensive private loans that proved detrimental to her financial well-being.
The challenges didn’t end there for Brooks-Long. On top of her student loan burden, she also endured the weight of thirteen overdraft charges in a single month, compounding her financial distress.
Seeking to uplift Brooks-Long in her time of need, Hammer provided her with some guidance. He suggested exploring higher-paying job opportunities to double her income. Additionally, he advised her to adopt frugal habits by reducing eating out expenses and considering a more cost-effective vehicle to replace her 2018 Nissan Sentra. The car loan she had taken out amounted to $13,500, adding a heavy burden of $300 per month to her financial obligations. Moreover, the loan’s impact on her credit score had been devastating, plunging from a healthy 720 to a concerning 549, requiring immediate attention for credit repair.
