Struggling with debt; average debt over $17 trillion, recommend paying off high-interest debt first
From Yahoo Finance: 2025-04-17 07:00:00
Many Americans struggle with debt, with the average debt reaching $17.57 trillion in 2024. High-interest debt like credit cards should be paid off first, with interest rates as high as 21.47%. Mortgages and student loans have lower interest rates and may be tax deductible. Consider debt consolidation for efficient repayment.
Federal student loans offer repayment plans based on income, eliminating debt after 20-25 years of on-time payments. Choose between the Snowball method, paying off the lowest balance first, or the Avalanche method, paying down the highest-interest loan to minimize interest. Debt consolidation can also streamline payments and potentially lower interest rates.
To get debt-free faster, increase income by working overtime, finding a better-paying job, or starting a side hustle. Commit to improving finances and seek advice from a fee-only Certified Financial Planner (CFP) for guidance on the path to financial freedom. Remember, the journey to a secure future starts with making the right choices now.