Do you stress about your debt? Not gonna lie, I worry about our finances all the time. With so many people unemployed or underemployed in the pandemic, and with prices rising in all different areas, I can’t be in the only one.

This article about debt consolidation and money management from DebtConsolidation.com talks about the mental health aspects of money management. This article talks about the value of self-care when dealing with finances:

Even if you are dealing with a lot of debt, try to find easy, low-cost ways to exercise, socialize and relax.

Go for walks in the park.

Get together with friends for potluck dinners at home.*

Take a yoga or meditation class at a community center.

(* IF YOU ARE ALL VACCINATED AND CAN MEET UP SAFELY, OF COURSE!)

We all know that having a hobby can reduce the stress of work, money, pandemic life, and just general pressure in our lives.  Of course books are my favorite hobby. Reading is such a great hobby for relaxation, and you know I love using the library. Having a creative hobby, like knitting or painting, can greatly reduce stress, too. And there are more and more ways to meet up with friends online to watch a show or play a game together.

One of the most common pieces of financial advice for anyone looking to pay off debt is the debt snowball, which means that any extra money towards repayment goes to the smallest creditor first. This way, you’re able to pay off one creditor quickly. After that, any extra repayment goes to the second smallest amount owed, and so forth. This can be a useful method for people who might have a small car loan or credit card debt, that could be paid off first, as well as larger school loans.

The second way is to choose the creditor with the highest interest, and focus any additional repayment on that one. As explained here, this reduces the total amount paid, by reducing the interest owed, although many people still prefer the debt snowball method because the number of bills owed goes down. Like everything financial, paying careful attention to interest rates is key to success. By paying off the highest interest rates first, you ensure that your payments now are working hardest to reduce what you owe next year and the year after.

In both of these methods, the most important thing is to make more than the minimum payments, as often as possible. It doesn’t have to be a great deal of money, because all payments over the minimum are helping cut down the amount owed and — more importantly — the interest owed on the next payment. Putting any additional savings or any side income directly onto student loan debt or credit card debt is sometimes called debt snowflaking, since loads of tiny snowflakes make up a snowball or avalanche.

Many of us hold student debt, which we were all told was good debt — go to college! get a better job! increase your earning potential! But it’s still debt, and still racks up loads of interest. A lot of financial advice blames too much Starbucks or avocado toast or whatever, but the real debt burden for many people is student debt. According the US News and World Report, the average student borrower takes out about $30,000 in college debt, and it would take 16 and a half years of daily Starbucks trips to spend $30,000. Even if you actually were drinking a $5 coffee every day, I mean, and who’s really doing that?

It’s important to make realistic plans when working out a plan to pay down debt. Making additional payments or higher payments to pay off debt can also reduce stress. By paying off debt — or even making a workable, reasonable budget to start paying it off, you’re also reducing the sources of stress in your life. Especially now, with interest paused on student loans, any payments you’re able to make will be extra effective.

To learn more, visit DebtConsolidation.com