How to Keep Debt at Bay

  • Paying off the little debts can give you confidence to tackle larger ones. It’s recommended to focus on debts with the higher interest rates, but sometimes a moral boost is worth it.
  • Don’t cosign loans. If the borrower misses a payment, your credit score plunges and the lender can charge you.
  • Every student should fill out the FAFSA; many miss out grants that don’t need to be paid back because they are not filling out the forms.
  • Choose federal student loansover private loans, they have flexible payment terms and often better interest rates.
  • Investigate repayment options for federal student loan payments. 
  • Opt for mortgage payments below 28% of your monthly income. That’s a general rule of thumb on how much you can afford.

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