PHOENIX — Repayment on student loan debt is a deadline that's been looming for a while now. And with interest and payments resuming this fall, people need to get ready.
But there's a lot that goes into making payments. Fortunately, Dave Ramsey's team of financial experts is here to help.
Dr. John Delony with Ramsey Solutions is a mental health and wellness expert.
The first step, according to him, is to face the reality that these bills are about to be due. “We’re going to have to pay these things back and we’re going to have to figure out a plan moving forward,” shared Delony.
“For three years we’ve been told, everything was going to be ok, and so people bought homes, they bought cars, they did all sorts of.. they made all sorts of financial decisions based on these loans going away and they are not going away.”
Deferral student loans will start accruing interest on September 1, 2023 and payments will start to become due for borrowers in October.
You have to face the reality that money only works in two ways, he said.
“You can make more of it or you can spend less of it,” said Delony.
“This is a word that everybody hates, but it’s a word that give us freedom, we have to look at a budget,” said Delony.
“It’s not just about cutting out lattes and a trip to Starbucks and avocado toast , it may mean we have to sit down and say ‘hey we wanted to live in this city and we wanted to have this job (but) we’ve got to move back home for a year’,” said Delony.
It all starts with a budget he shared. “How much money do we make and how much money does it take for us to live wherever it is we are,” said Delony.
Delony shared if you owe student loan payments, he feels now is not the time to follow your passion, but instead now is the time to pay your bills.
“It may be the season that you start quote on quote following your passion, and you find a job that will pay your bills so you can pay off these debts,” said Delony.
He shared if “you don’t owe anybody any money, nobody, then you can do whatever it is that you want.”
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