10.26.09 | Effectively Paying Down Debt
If you are like me you probably graduated from college with two things; a diploma and a pile of debt. It is completely normal for students to have federal student loans and private student loans to pay off after college, but on top of credit card payments, rent and insurance payments these loans can be a huge burden. There are ways to quickly pay down your debt without getting overwhelmed. Here is the method that I use:
1: Figure out your monthly income and expenses including any student loan and credit card bills. This will allow you to see how much money you have left over after the bare minimum is paid.
2: Pay at least the minimum payment on all of your debts each month. Missing any payment can negatively affect your credit score. A poor credit score will makes it hard to rent an apartment, buy a car and take out any kind of loan in the future. Additionally, if you put off making payments you will end up getting slammed with interest in the long run.
3: Without neglecting any other living expenses and a modest savings plan, use any extra money to pay off whichever debt has the highest interest rate. If you have a lot of credit card debt it is probably best to pay that down first. Once your credit card debt is paid off, try not to accumulate any additional debt. Once your first debt is paid you can move on to using your extra money to pay off whichever student loan has the highest interest rate and so on until you are debt free.
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Great hope all college students read and follow these practices. Good for everyone, solid advice.
October 26th, 2009 | #
I am trying not to get in debt I am trying to get scholarship instead of loan.I have no debt yet.A great article to read and learn by
October 26th, 2009 | #
I agree fully
October 26th, 2009 | #
Great article; as a first year student this article has been very helpful in guiding me in the right direction financially.
October 27th, 2009 | #
its good to have guidelines as to what to due when in debt. It keeps it from becoming overwhelming
October 27th, 2009 | #
Try to pay out as much as you can towards your debt. After you have paid you will feel better because the debt is not hanging over your head.
October 27th, 2009 | #
This all seems like common sense to me. But I guess common sense is not so common.
October 27th, 2009 | #
im stating my life now.. so this tips will give me a good head start.
October 28th, 2009 | #
that is much easier said than done
October 28th, 2009 | #
This is very useful information that i will make sure to use in the future.
October 28th, 2009 | #
I wished I had known about this before I got involved with loan but thats okay, it is still helpful in a long run.
October 28th, 2009 | #
this was useful especially since im headed to college now and starting my life out on my own.
October 28th, 2009 | #
Thank you for the information, it is very helpful!
October 29th, 2009 | #
I Learned About This In One Of My Courses;; Good Stuff [:
October 29th, 2009 | #
This is good advices how to manage well your finacial matter.
October 30th, 2009 | #
this is good advice that i will follow
October 31st, 2009 | #
Thanks for the info. I will be sure to keep this in mind to manage my money without struggle.
October 31st, 2009 | #
Great advice
November 1st, 2009 | #
The article states the same thing my parent’s have been saying and a class I took in High School.
November 1st, 2009 | #
I agree and can relate to all of this article.
November 1st, 2009 | #
this article is really good for other college students to read. =)
November 1st, 2009 | #
My parents have taught me not to use a credit card or pay the full amount in full each month if possible. In other words if you cannot afford it don’t buy it but we all know that is not going to happen. So like the article says do not skip a payment and try to pay the highest interest card off first.
November 1st, 2009 | #
My Pastor Talk About This Yesterday
November 2nd, 2009 | #
all it take to pay down debt is a job and disiplin
November 2nd, 2009 | #
I love the idea of a scholarship rather than a loan. This is great advice.
November 2nd, 2009 | #
thanks for the advice on paying off debts! I personally don’t have any debt yet but I want to try my best in the future to stay as far out of debt as possible so I always appreciate advice and tips on things to do to help stay away from debt.
November 2nd, 2009 | #
I definately agree with this article
November 2nd, 2009 | #
This article has given me a lot of insentive to strive for scholarship money. I don’t want to me in debt for the rest of my life.
November 3rd, 2009 | #
I am amazed at how quickly the debts add up. I dread the total when I do graduate! I need all the help I can get!
November 3rd, 2009 | #
Really good and useful information.:)
November 3rd, 2009 | #
The author assumes that you will have money left over after paying your minimum bills. What does a person in my situation do? I live in very rural northern Wisconsin. No internet service available, no cell phone service, no cable. I can’t move because my home and property have to stay within my family and there aren’t any members who can afford to buy it. I work 72 hours per week. Per day: work 12 hours , drive 1 hour to work then 1 hour back, sleep 7, 1 hour to eat breakfast and make my lunch and supper and only have 2 hours left a day for anything else. After my house, property taxes, homeowners insurance, propane, electricity, food, car, car insurance, gasoline, car maintenance, health insurance premium and out-of-pocket bills are paid I’m already in the hole. I don’t have any money for luxuries like t.v., vcr, dvd, computer, recreational toys, entertainment, air conditioning, clothes. What to do when no money left over, can’t afford necessities and don’t qualify for any assistance?
November 3rd, 2009 | #
Discpline and hardwork is all it takes to suceed!
November 3rd, 2009 | #
Hardwork and discipline is all it takes to suceed!
November 3rd, 2009 | #
I had a ton of debt in the form of medical bills before I went back to school, and now I have student loans on top of that. I’ve already started looking at scholarships to see if I can get any in hopes that they will help reduce my student loans before I leave school so I only have the medical bills to clean up after I graduate. This article is very informative without being too dry like some others I have read.
November 3rd, 2009 | #
So basically it is like a mortgage or down payment.
November 3rd, 2009 | #
I disagree with the article saying to pay off the one with the higest interest rate first. I graduated from Financial Peace University (Dave Ramsey) and he specifically says to pay off the ones with the smallest balances first. It keeps you motivated to see progress being made as the little ones fall off it allows you to have more money to put towards the bigger bills monthly.
November 4th, 2009 | #
I am currently under a debt management program and I’m always looking for ways to help with my debt. This article is helpful and encourging
November 4th, 2009 | #
I suppose if you are looking to stay motivated that is one strategy, but if you are looking to save money in the long run you should pay off the loan with the highest interest rate.
November 4th, 2009 | #
this article was great!
November 6th, 2009 | #
good commen sense info
November 6th, 2009 | #
thanxx for d advice!!!!!
November 6th, 2009 | #
wow, this definitely makes me think
November 7th, 2009 | #
i will try not to get in debt and oay my bills on time when they are due.
November 8th, 2009 | #
This was a usefull an great article.
November 9th, 2009 | #
This information was useful because now I know what to do when I get in debts.
November 12th, 2009 | #
This was a very informative article.
November 12th, 2009 | #
this is great advise for college students! Everyone should read this.
November 12th, 2009 | #
this is some really good advice!
November 13th, 2009 | #
this is really good advice.
November 13th, 2009 | #
I read it and thought it was common sensical…hope everyone gets somethining good out of it.
November 14th, 2009 | #
ok it makes sense.
November 14th, 2009 | #
great advice!
November 15th, 2009 | #
it so true that college student will be indebt
November 15th, 2009 | #
Helpful
November 16th, 2009 | #
this is important advice
November 16th, 2009 | #
good advice people need to listen.
November 18th, 2009 | #
Eveyone NEEDS to understand that we live in the USA and you are your CREDIT. If you have no credit you are not able to have anything CASH is not always everything but your credit score is.
November 19th, 2009 | #