Paying off my student debts

- Are you wondering how to pay off your debt?

(rhythmic music)

I'll explain in less time than it takes me to do a sun salutation.

All twelve poses.

- Tsk tsk.

We don't say poses.

We say asanas.

(sighing)

All twelve asanas.

(bell dings)

- Credit card, line of credit, student loan, car loan…

If you want to pay off or reduce your debt, we have tons of tips and tricks to get you there.

All you have to do is take it step by step and reduce your debt…

- And your stress.

- You are causing me stress.

(exhaling)

- First Asana, Mountain.

- Even if you have a mountain of debt, breathe gently through your nose...

(inhaling)

...and make a list of all your debts, including the amount, minimum monthly payments and interest rate.

- Second Asana.

- You don't have to announce every single po-- Asana.

The second step is to make a plan, over a year, for example.

That will allow you to evaluate how much you should pay back per month in order to achieve...

- Nirvana!

- Your debt with the highest interest rate should be paid off first because it costs you more.

You have different kinds of debt with the same interest rate?

Pay off the smallest one first.

It'll be gone sooner and that's...

- Relaxing!

- Relaxing.

Above all: always make your minimum payments, every month, for all your debts.

Your credit score will thank you.

- Third Asana!

- Now you're really stressing me out.

Make a budget to see where you can cut your spending.

If your budget is tight, change your spending habits.

You can repair your broken devices, become a bargain hunter, buy used.

You can also consolidate your debt.

That means asking your bank for a loan to bring all of your debt together into one monthly payment, often at a lower interest rate.

Talk to an advisor about it.

Even if you reimburse all your debt, try to put some money aside for emergencies.

Then, you can think about saving and investing.

 And even once your debt is under control, it's important not to create more.

(waves crashing) 

(bell dings)

I won!

- It wasn't a competition.

- It was, literally, a competition!

Let's go.

- Nah. I'mma stay.

(bell dings)