By paying the lowest balance first, you experience some success right away. After you pay off the smallest balance, plug that extra amount into payments against the second-highest debt. Repeat these steps until you are debt-free. You will begin to realize that they do not 'matter' so much. I think one of the big lessons to learn is the difference between good debt and bad debt.
College loans are good debt.
College loans are good debt because they have low interest rates and interest is tax-deductible, she says. Also, college loans enable people to get a degree and, eventually, a job, which can lead to financial security. Instead, pay the minimum monthly payment and use remaining cash to tackle credit-card debt. Interest on credit cards usually is much higher than on school loans. By paying only the minimum monthly payment on credit cards, you'll never get ahead.