How to tackle student debt

How to tackle student debt

It can be a burden, but all it takes is one step at a time. It’s definitely not fun to leave college with mounds of debt up to your eyeballs. When you step out into the real world, your financial strategy plays a big role on how you not just tackle student loans, but everyday

Saving for education

It can be a burden, but all it takes is one step at a time.

It’s definitely not fun to leave college with mounds of debt up to your eyeballs. When you step out into the real world, your financial strategy plays a big role on how you not just tackle student loans, but everyday expenses. The average student loan debt has tripled since the mid-1990s, with the average being $35,000 in 2015. The CEO of Blooom, Chris Costello, says his clients are torn between paying the student loan debt, or contributing to their 401(k). Costello says if your employers matches contributions to a retirement plan, you should take advantage of it.

Once you have started putting money away for retirement, Costello says to take care of the debt with the lowest balance. This is called the “debt snowball method.” Costello says you feel confident in yourself paying off the smaller loans that tackling the larger ones will give you the mental power to do so. Other options if you are unable to pay off loans right away are loan forgiveness, refinancing, and consolidation.

Read more at NPR: http://www.npr.org/2016/03/01/468272843/strategies-for-when-youre-starting-out-saddled-with-student-debt

Bob Hagh
ADMINISTRATOR
PROFILE

Posts Carousel

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Latest Posts

Top Authors

Most Commented

Featured Videos