It is common to have more than one type of loan, and it is especially true that when you graduate from college and start your first “real job”. You may have a credit card loan, an auto loan and a mortgage payment after purchasing your first house. It is also common to cover other random loans including student loans.

If you are like many people who have taken a loan during college, you will probably pay them after graduation. In fact, 82% of the loan borrowed students expect to pay after paying recently, according to the recent College avenue student loan Survey.

He said, you want to make sure that you are balanced the loan repayment with your savings goals on the way.

You would also like to ensure that you are also Pay credit In the optimal order, or in a way which will help you save the most money on interest as possible when aligning with your goals. What loan should you first give? Here is a randon to get the best results:

1. Pay high-blessing loan

No matter what kind of loan you have, credit card loan should be your first priority. Why? Because the credit card loan is probably the most expensive loan you have.

Federal reserve data The average credit card shows interest rate on the assessed accounts. Interest interest arrived at about 22% by May 2023, yet your credit card can easily charge higher than the average rate.

To save as much money as possible, you should try to pay as much as possible every month towards the high-onion credit card bill. You can pay fast credit card loan with the help of loan consolidation loan or 0% APR Balance Transfer Credit Card.

2. Other unsafe loans

Other unsecured loans such as personal loan loan should come forward in order to repay the loan. Ultimately, unsafe loans have higher interest rates than safe loans such as auto loans. In fact, Federal Reserve also told The average interest rate on a 24 -month individual loan was 11.48% by May 2023, compared to an average rate of 7.81% on a 60 -month auto loan.

Ideally, you will start paying more to personal loan loans and other unsafe loans after all the credit card loans are fully paid, although you should pay minimal minimum payments. All your bills Throughout the process.

3. Next, student loan

The next debt that you want to do is your student loan. I suggest that other unsafe loans focus on these loans, because federal students loans (and many private students loan) come with low fixed interest rates and monthly payments that will not change over time. If you have federal student loans, you also want to see Income inspired repayment schemes,

If you are expecting students to pay the loan fast or just want to save money on interest, you can also consider Reaping your student loan To receive a small repayment timeline, a low monthly payment, or both. Just remember that refinance of federal student loans can mean postponing and losing access to e-erections such as income-operated repayment plans and federal security.

4. debit balance

Once you pay or pay to a large extent when you pay or pay to a large extent, you can focus your efforts on safe loans that you like hostage loans and auto loans. These loans should be finalized as they are safe with collateral and offer low interest rates as a result. For example, you can consider paying more than minimum than minimum on your mortgage, a car loan, or both until they are fully paid.

Then, you may want to gradually pay loans with low interest rates to free live expenses and investments. If you have a hostage in January 2021 if you average Interest rate The 30-year, fixed rate home loan was as low as 2.65%, for example, it makes sense to make minimal payments on that loan and invest its extra cash instead.

Other financial views

It is important to ensure that you balance the loan repayment with other financial ideas. After all, focusing a lot of focus on the early loan repayment in life can leave you behind when it comes to investing for retirement or saving for the first house.

While you want to eliminate credit card loans and other high-onion loans as soon as possible, even if you stop saving and investing for a while, you can pay student loans and get a slow loan while saving and investing for the future on the way.

Finally, make sure you have Adequate emergency savings During your entire loan repayment journey, or that you start savings for an emergency as soon as possible. Without a fully funded emergency fund, you can rely on credit cards and other loans to achieve and ruin your loan repayment progress in this process.

How much should you save? While most experts recommend being an emergency fund that can cover the expenses of three to six months, it is okay to start small.

final thoughts

Having more than one type of loan makes it work for most people, especially when you are young and in the early stages of your career. When it comes to paying, however, you want to ensure that you have a solid plan that can help you reduce the interest fee and get where you want to be.

Focusing on credit card loans and other unsafe loans is always understood first, as these loans are not safe by any property and charge too much interest rates. You can further focus on student loans, then you have a home loan or car loan after other safe loans.

Meanwhile, make sure that you have a sufficient emergency fund and invest in it for retirement. After all, the loan will not last forever if you are serious about repayment, and early saving and investing can help you benefit from compound interest and avoid using credit cards to spend surprise. Creating a budget to track these factors is your best bet.

If you need help in making one, or just don’t know where to start, use it Budgeting sheet As your guide – you will reach financial freedom in no time.