Feeling Overwhelmed – How Did I Go from $42k to $45k in Student Loans?

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Hello…I’m feeling really overwhelmed and could use some advice. I started with $42k in student loan debt, and despite making regular payments and even paying a little more than the minimum, my balance has actually increased to $45k.

I’m also juggling payments for my car loan and rent, and it feels like my student loans are just continuing to accrue interest without making a dent in the principal. I’m considering just focusing on the minimum payments for now and dealing with it later, but I’m worried about what that might mean in the long run.

As a first-generation college student, I’m struggling to understand how to manage this debt effectively and feeling discouraged by the system. How did previous generations handle this? Any advice on managing student loans while balancing other financial responsibilities would be greatly appreciated. :wink: :wink: :wink:

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I totally get how overwhelming student loan debt can be, especially while managing other expenses. When I faced similar issues, I found that focusing on understanding the terms of my loans and exploring options like income-driven repayment plans really helped. Previous generations often handled this by prioritizing high-interest debt first or consolidating loans for better rates. Consider speaking with a financial advisor to create a strategy that works for you. Balancing minimum payments on student loans with your car and rent payments might be a temporary solution, but don’t lose hope—there are strategies out there to help you manage and eventually reduce your debt. Keep pushing forward, and remember that there’s support available.

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Take a close look at your income and expenses. Create a budget to understand where your money is going each month. This can help you identify areas where you might cut back or adjust spending to make room for debt payments.

Also, since you’re juggling multiple payments, prioritize them based on importance. Generally, it’s crucial to make minimum payments on all your loans and bills to avoid penalties and maintain good credit. Focus on high-interest debt first if possible.