As I was reporting for this week's magazine story on 20-something personal finance, I asked Tricia from Blogging Away Debt to share her own perspective on prioritizing different forms of debt, such as student loans and credit card debt, without getting overwhelmed. (Tricia has paid off over $26,600 in credit card debt since February 2006.) Here's what she said:
We had over $100,000 in debt when you added up our mortgage, student loans, and credit cards. To tackle all $100,000 at once would be overwhelming. Instead, we decided to focus only on the credit cards while keeping the mortgage and student loans on minimum payment auto-pilot. Once our credit cards are paid off, then we'll work to pay off the student loans, then the mortgage. Breaking down our debts in that fashion has been very helpful in keeping us motivated.