Student debt has climbed to another all-time high at $1.4 trillion dollars; an increase of 116 percent in the last 10 years.
On average, individual student debt is roughly $37 thousands dollars. Large debt like this may become overwhelming and cause other financial burdens, too. The 397 monthly payments on loans may feel impossible when including other debts and expenses. By taking an aggressive approach and attacking debt with a vengeance, you can take control and clear it faster than ever.
Here are two easy options to get started on tackling debt:
Debt SNOWBALL: List all debts from the smallest-to-largest balance; pay the minimum payment on every debt except the smallest. Put any extra money towards smallest balance, and then rinse and repeat until you’re debt free.
This strategy is great for gaining the confidence you need when taking care of your debt. By starting with the smallest amount and going to the largest will help eliminate them all faster. Mentally, it will become a lot easier, too.
Debt AVALANCHE: List all debts from highest-to-lowest interest; pay the minimum on every debt except the highest percent. Put any extra money towards the highest interest, and rinse and repeat until you’re debt free.
If you find yourself overwhelmed about your student debt, take some time to focus on what is good and keep your attitude positive through the process of paying off your debt.
Written By: Adrianna Raddatz, Logan Konitzer, and Jalyn Murphy
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Solid!
simple!