Podcast Summary: "Trapped by Student Debt" – What We Spend
Host: Courtney Harrell
Release Date: April 9, 2025
Introduction
In the episode titled "Trapped by Student Debt," What We Spend, hosted by Courtney Harrell, delves deep into the financial struggles associated with student loans. This episode spotlights Kelly, a 32-year-old Salt Lake City resident, who embodies the challenges faced by millions of Americans grappling with substantial student debt while striving to achieve personal milestones like homeownership and starting a family.
Meet Kelly: Navigating Debt and Aspirations
Kelly, one of the 42.8 million Americans burdened with student loan debt, serves as the episode’s primary guest. At 32, she juggles multiple roles as a Director of Client Experience at a medical spa and an online mental wellness coach. Kelly and her husband, Ben, recently relocated from Tennessee to Salt Lake City, Utah, where Ben works as an engineer earning approximately $78,000 annually, while Kelly earns about $50,000 hourly before taxes and benefits.
Kelly’s Financial Snapshot:
- Income: Combined annual income of roughly $128,000 before taxes and health insurance.
- Debt: A staggering $202,728, including $150,000 in private student loans initially, later reduced to $150,000 after family assistance.
- Monthly Expenses: Approximately $4,800, covering rent, utilities, car insurance, groceries, and other essentials.
The Burden of Student Debt
Kelly candidly shares her journey with student debt, highlighting a pivotal moment when her parents covered $150,000 of her private loans, reducing her debt from $300,000 to $150,000.
Courtney Harrell [03:06]: "I have $150,000. I had more. I had $300,000 after my master's. I had a great uncle pass away who was an artist. And my parents chose with their share of that that they would help pay off all my private loans. And so that was a crazy night. I remember pressing submit on $150,000 payment and just being like, holy shit. And they were like, yay. Doesn't that feel so much better? And I was kind of like, it feels like 50% better. And it still feels like I have still $150,000 of debt."
Despite this generous assistance, Kelly expresses lingering anxiety over her remaining debt, emphasizing that financial freedom still feels elusive.
A Week in Kelly's Financial Life: Expense Tracking
The heart of the episode lies in Kelly’s decision to track her daily expenses meticulously for a week, revealing the intricate balance between her income, expenses, and debt management.
Day 1: Managing Groceries and Unexpected Expenses [03:56 - 04:08]
Kelly details her grocery shopping, spending $250.38, which included essential items like Diet Coke, eggs, and groceries totaling $600 monthly. An unexpected student loan payment led to an overdraft, forcing her to borrow from her father to cover the shortfall.
Courtney Harrell [10:07]: "When in real life, it's not."
Day 2: Financial Surprises and Debt Snowball Strategy [14:15 - 16:44]
A pleasant surprise emerges when Kelly cancels an unaffordable laser hair removal membership, resulting in a $1,000 credit. She plans to apply this windfall toward her Apple credit card, effectively advancing her debt snowball strategy.
Courtney Harrell [15:00]: "So I started a laser hair membership...but I thought I was locked into this contract anyway."
Kelly [16:44]: "A debt snowball is a strategy to tackle debt...Kelly loves tracking her debt snowball..."
Day 3: Balancing Work and Emotional Struggles [17:37 - 21:24]
Kelly recounts a day mixing work achievements with personal struggles, such as observing customers spending large sums effortlessly, which stirs feelings of jealousy and helplessness. She spent $75 primarily on gas and small treats but grappled with the contrasting financial freedom of others.
Courtney Harrell [21:17]: "I'll see you in four weeks. Good night."
Day 4: Facing Potential Jury Duty and Unplanned Expenses [25:00 - 27:52]
An unexpected jury duty summons looms, threatening unpaid time off and financial strain. Additionally, Kelly battles with automatic payments from apps like Afterpay, inadvertently increasing her expenses by $19.80. A necessary purchase of prescription sunglasses adds another $125 to her budget.
Courtney Harrell [26:41]: "I think it's $19.80... I did have to get some prescription sunglasses and it was $125."
Day 5: Finding Joy Amid Financial Constraints [28:02 - 30:44]
Kelly allows herself a spontaneous $10 mini-golf outing, recognizing the importance of play in maintaining social connections despite financial stress. This small indulgence underscores the delicate balance between necessity and leisure.
Courtney Harrell [29:22]: "I feel like I needed to play a little bit... it's a hard thing when it doesn't feel like connection is in your budget."
Day 6: Emotional Reflections and Family Aspirations [30:52 - 34:42]
The day concludes with Kelly hosting a dance party at home and emotionally watching an episode of The Bear, leading her to reflect on her desires for a stable family life free from financial anxiety. She expresses a deep longing to provide her future children with financial security and freedom from debt.
Courtney Harrell [33:19]: "I want to own a home before we have children because then we are building wealth and establishing an asset."
Day 7: The Final Stretch and Small Savings [34:42 - 35:16]
Kelly wraps up the week with another Costco trip, making frugal purchases like almond milk, eggs, and the iconic Costco hot dogs, totaling $22. Yet, she remains vigilant about her spending habits.
Insights and Reflections
Throughout the week, Kelly's meticulous tracking highlights the relentless pressure of debt management and the emotional toll it takes. Her experiences reflect a broader societal issue where financial aspirations are often stifled by educational debts.
Courtney Harrell [35:33]: "It helped me to be a little bit more present because it brought me back to like, okay, today, what money do I have and have I sent out into the world today?"
Kelly’s reflections reveal a constant tug-of-war between maintaining control over her finances and the overwhelming nature of her debt, emphasizing that beyond numbers, money profoundly impacts emotional well-being and life choices.
Concluding Thoughts
In "Trapped by Student Debt," What We Spend offers a raw and unfiltered look into the life of an individual striving for financial stability amidst significant debt. Kelly’s journey underscores the importance of budgeting, the emotional challenges of debt, and the societal pressures surrounding higher education costs. The episode serves as a poignant reminder of the pervasive impact of student loans on personal dreams and the relentless pursuit of financial freedom.
Courtney Harrell [36:45]: "We're not debt free from just cards again, not including my student loans, we're not debt free until almost 2027... it makes a very black and white formulaic, easy. It's simple. When in real life it's not."
Kelly’s story is a compelling call to action for more transparent conversations about money, the real costs of education, and the strategies needed to navigate financial hardships.
Credits:
What We Spend is an Odyssey original podcast written and hosted by Courtney Harrell, with producers Margot Gray and Kristin Torres, editor Jonathan Menhivar, and executive producers Maddie Sprunkheiser and Leah Rhys Dennis. Special thanks to contributors and supporters listed in the episode.
If you’re inspired by Kelly’s story and want to share your financial journey, consider reaching out to What We Spend by writing to whatwespendpodcast@gmail.com.