She Strengthens

The Weight of Living Well: Breaking Free from Debt

As we navigate the complexities of adulthood, one thing is certain: managing our finances can be overwhelming. It’s easy to assume that others have it all figured out, but the truth is, we’re all struggling to make ends meet. Whether you’re a student living on ramen noodles or a high earner with a luxurious lifestyle, debt can be a significant burden.

The Millennial Debt Crisis

For many of us, student loans are a major source of financial stress. With the average millennial debt for a Bachelor’s degree hovering around $31,000, it’s no wonder that making loan payments has become a daunting task. But you’re not alone. We’ve teamed up with Andy, founder of Student Loan Hero, to bring you expert advice on managing your student loans.

A Reader’s Story: Feeling Lost in Debt

Meet Emelie, a TFD reader who’s struggling to make sense of her financial situation. With multiple loans, confusing interest rates, and a sense of overwhelm, she’s feeling lost and unsure of where to start. Her story is all too familiar: taking out loans for a master’s degree, deferring payments, and accumulating compound interest. She’s wondering if consolidating her loans, paying off interest, and cashing out her retirement savings are viable options.

Expert Advice: Taking Control of Your Debt

Andy, founder of Student Loan Hero, offers Emelie some much-needed guidance. First, he recommends getting a clear picture of her outstanding debt by checking the National Student Loan Data System and her credit reports. Once she has a handle on the numbers, she can create a repayment plan. Consolidating her student loans might be a good option, but it’s essential to understand the pros and cons of federal loan consolidation and refinancing with a private lender.

Making Progress, One Step at a Time

Andy also advises Emelie to focus on making payments while her loans are deferred, even if it’s just covering the monthly interest. He encourages her to explore PSLF further and challenge the count of qualifying payments. Lastly, he cautions against cashing out her retirement savings to pay off debt, emphasizing the importance of weighing her goals and considering the long-term implications.

Breaking Free from Debt

Emelie’s story is a reminder that we’re all struggling to manage our finances. But with expert advice and a willingness to take control, we can break free from the weight of debt and start building a brighter financial future.