Episode 1:

Show us Your D(ebt)

It starts with a D and comes in various sizes…CHILL. We’re talking about debt. Taking on debt, erasing debt… everything debt. In one golden episode.

$$$ This Is How You Get Money $$$

So when it comes to the D-word there are a few things you oughta know:

  1. There’s good debt and bad debt. Good debt is used to acquire an investment like a college education or a home you live in. Bad debt is used to pay for short term wants, aka credit card debt. 
  2. You almost always have options with debt. It’s a big marketplace out there and there’s bound to be someone willing to buy your debt off of you, which simply means you can refinance your debt at a lower interest rate. 

When it comes to your D, there are some actions you can take to get it under control:

  1. If you’re struggling with credit card debt, you can try the snowball method: pay off the smallest balance first so you feel empowered to pay off the rest. Trick yourself! If you Google how to pay off credit card debt, the results will tell you to pay off the highest interest rate first, but if you try the snowball method, you may be empowered personally to pay off the debt faster. So try it both ways because every human is different. 
  2. If you’re looking at ways to manage credit card debt, a balance transfer might make sense. But you do need good credit to make a balance transfer, so work on improving your credit first.
  3. If you have student loans and you’re looking at how to repay, know that you basically have two pathseither to refinance in order to get a lower interest rate and pay it off as fast as possible or go for an income driven repayment plan and pay as little as possible each month to free up some cash flow. If you have federal student loans, don’t sleep on income driven repayment plans. It’s kind of dense material, but read up, especially if you work for a non-profit or as a teacher.

To wrap it up, don’t stress about debt and don’t feel hopeless. There’s a lot of options out there and it’s on you to explore them.