Question

Tiffany will graduate from college in december with a degree in elementary education. she already has a teaching job lined up, and it will be the first time in her life that she will make more than minimum wage. she has $15,000 in student loan debt, $6,000 to pay on a car repossession, and $3,000 in credit card debt. how should she handle the salary increase?

Answer 1

Tiffany should make a monthly budget and allocate as much as possible to pay down her debt and avoid the compounding interest that will continue to accumulate over time. She should focus on paying the highest interest debt fastest while still making regular payments on the other debts.