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Hi Taylor
- I'm closing in on 30, have a good job, and steadily increasing wages,
but I feel like my student debt and credit cards aren't decreasing
at all. What am I doing wrong? - Jim
Hi Jim - Sorry to hear about the debt. Honestly, it's less about
what you're doing wrong and more about what you aren't doing right.
So many people work hard and make consistent payments, but debt is
designed to stick around and hold you back. With that being said,
there are two ways to tackle the problem. |
1. Consolidate.
If you looked into debt consolidation right after college and
couldn't find anything, there may be better options available
for you now. A lot of lenders have narrowed their focus to help
certain professionals get out from under their student loans and
credit cards. For example, Splash Financial helps graduates with
consolidation, with a special focus on the medical students who
come out of a decade of schooling with upwards of $200,000 in
debt. If you compare and contrast the different online lenders,
you should be able to find a company with the right financing
for you, especially if you're working steadily and making a good
living. If you want to learn more about the basics of consolidation,
check out the post on GoFarWithKovar.com.
2. Get aggressive. Once debt reaches a certain tipping point,
becoming a significant portion of your overall worth as opposed
to a small monthly bill, you have to go above and beyond to take
care of it. I know from personal experience that it takes a near
Herculean effort to deal with hefty loans, but when you get into
the mindset of budgeting, saving, and putting every extra penny
toward getting out of debt, it can be done. Start by making a
debt management plan - look at all your loans, see which have
the biggest balances, which have the highest interest rates, which
might be easiest to consolidate, etc. Once you have a plan for
how and when you'll pay off each balance, set a budget that helps
you pay as aggressively as possible. Every extra dollar you put
toward debt is a few pennies saved on interest, and that effort
will lead to huge dividends when you shorten the life of a loan.
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Remember, your
expenses will always rise to meet your income unless you make a concise
effort to not allow it. Be smart and decisive, and you'll soon see
those loans dwindle away until they're a thing of the past. Good luck!
© Taylor Kovar
April 28, 2020
More "Go Far With Kovar" |
| Legal Disclaimer:
Information presented is for educational purposes only and is not
an offer or solicitation for the sale or purchase of any specific
securities, investments, or investment strategies. Investments involve
risk and, unless otherwise stated, are not guaranteed. Be sure to
first consult with a qualified financial adviser and/or tax professional
before implementing any strategy discussed herein. To submit a question
to be answered in this column, please send it via email to Question@GoFarWithKovar.com,
or via USPS to Taylor Kovar, 415 S 1st St, Suite 300, Lufkin, TX 75901.
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