So I have some good news and bad news: hopefully, the good news is good enough. The Care’s Act allowed people with Federal student loans to go on Auto Forbearance until September 30th, without having to pay interest.

1. Income
– A lot of people don’t have a job right now, but they have unemployment and got a stimulus check
– And lets be honest some of you actually didn’t lose your jobs
– And actually have a lot more extra money than ever before
( so before you go spend it on a $40 hand sanitizer bottle)

What to do:

– I wish it was more complicated so I can look smarter but it’s not
– Right down your income, every single dollar you earn per week and per month and per year after tax ( tax bracket)

So for example:
– Me currently I’m getting tax at around 24% hopefully.
– So if I make 100k: the government keeps 24k and I keep 66k ( without income state income tax, of course, lol, which varies by state)
– So I then divide 66k/12: $5,500 ( and that is the amount of money you have monthly, now minus all your expenses, and what is left is your actual free money to put towards debt) – Necessities only

Non-Ethincal tip: If your landlord gave you a break, take the break and use that money to pay off debt ( interest debt is worst trust me).

2. How to pay the Debt
– The idea is pay the highest interest Debt First and work yourself down
– That usually means, Credit Cards first, Then car note, then Student loans and then finally your mortgage.
– But its highly unlikely you’re going to pay your mortgage in 5 months so let’s save that for later.

Tips:
Call your credit cards and all the people you owe money to, and ask about the APR or just check online its easier and no waiting.

How to:
– Again I wish it was more complicated but it’s not
– List all your debt: Name, Amount, APR ( from highest to lowest), and also the minimum payment.
– Pay the minimums on all the ones due, and pay the full amount of the money you have left for debt to the highest apr debt.

TIP: Any bills that don’t want to charge you interest, take it, and pay off some debt.

3. How long will this take
– Well the math will show you
– If you have 5500 left after taxes per month
– And after expenses, you have left 2000 left

Calculation:
– If you owe 10,000 then you’ll be done in 5 months
– And if anything beyond 1 year and 1 day, then go buy noodles and rice and beans
– And start cutting off all your bills and finish faster.

TIP: Stay consistent, and no I’m not a big fan of doing something you hate for 10 years to get the loan forgiving. The time you cant gets it back.

Overall:
– Debt is important to get it over with
– But focus also on increasing your income
– And that why I have another video, break down my budget, and how I do everything at once.

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*Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I’m an Accountant but I’m not your Accountant, always review information with your Accountant/CPA and your Financial Advisor.

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