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How This Texan Paid Off $50,000 in Debt in 5 Years

By U.S. News & World Report

When Glen Zubia graduated from the University of Texas at El Paso in 2009, he had just over $50,000 in debt between student loans, a car loan and credit cards. For the first few years, he worked as a graphic designer and made the minimum payments required. Then, three years after graduating, Zubia got more serious about extinguishing his debt and started buying sneakers, sports jerseys and video games he could resell through Craigslist, eBay and other sites.

[See: 10 Easy Ways to Pay Off Debt.]

Four and a half years later, Zubia had paid off his debt thanks to his resale hustle on the weekends. He also launched Hustler Hacks, a website and YouTube channel where he shares his strategies. U.S. News recently spoke with Zubia about his passion for reselling online, how he spots a good buy and his future goals. The following excerpts have been edited for clarity and brevity:

How did you get into the resale world?

I signed up for eBay around 2000 or 2001 as a little side hobby. I started off with football figures. I would repaint them as certain players that maybe weren’t on the market and sell them. I just wanted to do something different with my art I guess, so I started making money doing that. Once I started college, I stopped for a little bit, and after I graduated I had student loans, so that’s when I really started taking it seriously.

What mistakes do you see in reselling?

A lot of people want to make money really, really quickly, and I started off really slowly, just doing garage sales, Craigslist and eBay selling. I didn’t want to spend a lot of money at first. I followed a buy low, sell high mentality, and just did whatever I could in the amount of time that I had.

How did you know before you bought something if you’d be able to sell it for a higher profit?

I started by researching things on the eBay app. They have a completed listings filter that allows you to see what certain items have been selling for in the past month or so — what they’ve actually sold for instead of just whatever price people throw out there. People think that just because someone has it out there on eBay that it’s going to sell for that much.

Even while at a garage sale, I would research the things that caught my eye. I like to tell people that what you know and what you have knowledge of is really what you should start off with. I like collecting sneakers, and I was always into sports and the NBA, so I knew certain sneakers that were worth a good amount of money, along with jerseys and also video games.

[See: Your Month-to-Month Guide to Savings.]

How do you balance reselling with your day job?

That is probably one of the toughest things. On Friday nights, I would list things early because on Saturday I was always going to garage sales, flea markets, swap meet type things [a gathering where collectors trade items]. I would get up at like 4:30 a.m. and then I would be doing all of that stuff until maybe 1 or 2 p.m. I really try to utilize weekends because Friday night, Saturday and Sunday are specifically for reselling.

Any tips for others who want to get into reselling?

I think it’s so important to diversify your income. So many people get laid off or fired, and if you’re just relying on that one check, you are going to be in trouble in trying to figure out what to do next.

I think it’s so important to diversify your income and look at these opportunities that are out there. Everything is at your fingertips. You can look up any item whether you’re in a resell store or thrift store and see how much certain things are worth. And it will take some time to learn reselling, but I just think it’s important to diversify your income so you’re not in panic mode when something happens.

Now that you’ve paid off your debt, what’s your next goal?

I’ve started dabbling on Merch by Amazon [an invitation-only platform that allows Amazon users to create and upload their merchandise]. They have a business where I can upload my graphic designs and they make them into T-shirts, so I have been doing that. I’m getting married next month, so my goals have now changed to paying off my house. The good news is that I’m able to tackle debt totally differently than before I started reselling.

[See: 8 Financial Steps to Take After Paying Off a Debt.]

I reinvested all the reselling money into the reselling business or it went straight to these loans. While making those minimum payments, I just kept thinking that they would probably never go down because of these interest rates and everything with the student loans, but now with the reselling side hustle and making extra income, my next goal is to pay off my house in 10 years or less.

More from U.S. News

10 Items to Add to Your Financial Bucket List

10 Foolproof Ways to Reach Your Money Goals

10 Money Leaks to Shut Down Now

How This Texan Paid Off $50,000 in Debt in 5 Years originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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