Student Loans & Debt Strategy
Not all debt is bad. Learn the difference between good debt, bad debt, and soul-crushing debt — plus the most effective payoff strategies.
“Debt is just a tool. A hammer can build a house or smash your thumb. The difference is knowing which debts to take and which to destroy.”
What you'll learn
Good debt (mortgage, student loans at low rates, business loans with ROI) vs bad debt (credit card debt at 22%+, payday loans, auto loans for depreciating assets you can't afford). The interest rate tells you which is which.
Snowball (pay smallest balance first, get quick wins) works psychologically. Avalanche (pay highest interest first, save the most money) works mathematically. Both are better than minimum payments. Pick the one you'll stick with.
Student loan strategies: income-driven repayment (IDR) plans cap payments at 10-15% of discretionary income. Public Service Loan Forgiveness (PSLF) forgives remaining balance after 120 qualifying payments for government/nonprofit employees. Refinance private loans only — refinancing federal loans loses IDR and forgiveness options.
Debt consolidation can simplify multiple payments into one, but it's only a win if the new rate is lower and you don't run up the old cards again. Balance transfer cards (0% APR for 12-18 months) can accelerate paying down credit card debt — but watch for the 3-5% transfer fee.