Phoenix — Jade Warshaw was able to get out of nearly $500,000 in debt. And she shared with 12News how you can do it too.
“It sounds like an astronomical amount, and it is, but more and more people are running into six-figure debt. This is becoming more and more the norm,” Warshaw said. .
Warshaw is a personal finance expert at Ramsey Solutions. She is the co-host of The Dave Ramsey Show.
Warshaw and her husband had $460,000 in debt, more than half of which was student loans. She said it took her seven and a half years to pay off, but she was able to pay off by starting a snowball. They paid off the smallest debt first and continued to roll that money into their next payment.
Creating a budget is key, she said.
“Every dollar has to be given an allocation, and for most people getting out of debt, it’s often more than just cutting back on spending without quitting the restaurant or taking on extra spending. It looks like we need to do the following: Find ways to increase our income and bring in more income,” Warshaw said.
Mr. Warshaw also shared that to put the money to work in the right places, we need to: Think about her side hustle, her sacrifices, her career shifts, and the sales she can do, she said.
Warshaw and her husband found a way to make extra money with a side hustle. They made sacrifices like stopping eating out and deciding to sell their car and become a one-car family. They also made career shifts to ensure they got as much money as possible.
Although paying off debt can feel like a lot of sacrifice, she hopes people see it as an opportunity and think of it more as a deal.
”You’ll be trading one card for another, but the card you’re trading is better, right? Because that card gives you peace. it gives you freedom. Helps you sleep at night. It’s not a sacrifice. It’s a deal,” Warshaw said.
Warshaw and her husband have $280,000 in student loan repayments alone, which is a hot topic right now as student loan payments come due again in October. She wants people to know that you are not alone.
“Currently, 40 million people have student loan debt. You’re definitely not alone. Student loan debt is over $1.7 trillion. That means you’re alone in this boat. That’s not true. I was there too, and I know how you feel.” Warshaw.
Student loans, which had been suspended for more than three years due to the pandemic, began accruing interest in September. These bills are due soon. Warshaw argues that many loans are sold to a variety of providers, so borrowers need to check who their loan provider is. She said to make sure you know when your bills are due and check your budget to see if you can pay them. You should only consider a payment plan if you can’t make the monthly payments, she said.
“The only time I would consider a repayment plan is to lower the minimum amount so that you can use the debt snowball method to pay off your debt,” Warshaw says.
Ramsey Solutions will host a free live stream focused on student loan debt on September 12th at 5pm Arizona time. For more information, please visit: www.ramseysolutions.com/debt/student-loan-debt-hub.
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