According to the Federal Reserve, outstanding consumer debt is well over $3 trillion, exclusive of mortgages. This may be in part because people are not being serious about eliminating debt, but failing to pay off loans can hinder someone’s ability to save for retirement. Student loan debt can take quite a while to pay off, but people should prioritize doing so.
Some of the ways that an individual with student loan debt can speed up the repayment process are to pay off loans in order of interest rate, increase their income and lower their living expenses. To help reduce the amount of interest that someone will have to pay, they should focus on paying off their highest interest loans first while making minimum payments on all other loans.
People may also want to look for ways to bring in more money. This can include working an additional part-time job, driving for Uber or using Airbnb to rent out their home. Individuals may also want to look into lowering their cost of living. This may involve moving to a different area, buying a used car instead of a new one or making smarter choices about unnecessary purchases.
If someone is having trouble making ends meet due to large amounts of debt, filing for bankruptcy may help give someone a fresh financial start. Although bankruptcy may not discharge most student loans, the discharge of other unsecured debt may help people return to firm financial ground. A lawyer who has experience with these matters can outline the eligibility requirements associated with Chapter 7.