A few years out of college, Steven Donovan owed about $118,000 on student loans, credit cards, a personal loan, and an auto loan, he said in a recent NerdWallet Q&A.
After his student loan company tripled his monthly payment, Donovan moved back home with his parents and sold his luxury car, cutting his debt down to about $90,000.
He soon implemented the “debt tornado,” channeling his “anger and rage” into paying off the debt he disliked the most. Within five years, he was debt-free.
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When it comes to paying off debt, motivation is crucial.
For Steven Donovan, a financial coach who was recently profiled on NerdWallet, nothing worked quite like channeling his “anger and rage” into paying off the debt he hated most — a method he calls the “debt tornado.”
After graduating from college, Donovan owed around $98,000 on student loans and credit cards. He wasn’t focused on repaying the debt, and his credit-card balances slowly ticked up. A few years later, he financed a Mercedes-Benz, adding $18,000 to his debt load.
On a whim, Donovan moved from Chicago to Miami and soon found himself with little income to cover his monthly debt …read more
Source:: Businessinsider – Finance