With over $ 195,000 in student loan debt, Annika Hudak saw little harm in swiping her credit cards.
She crushed over $ 20,000 in debt at the age of 24 | Local company
By MELISSA LAMBARENA NerdWallet
“I was in the mind that I’ll be in debt forever, so what’s a few thousand dollars here,” said Hudak, 25, a product analyst in Oregon.
Hudak eventually racked up around $ 20,242 on four credit cards by billing for food, books, school supplies, and other expenses. Like her, many borrowers also have other forms of student debt besides student loans, including 21% who have credit card debt, according to a recently released report. Federal Reserve Report based on 2020 data that explores the economic well-being of U.S. households.
In college and in the early years of her career, she had not found her financial place. It wasn’t until she heard about other people’s debt repayment stories on YouTube and other platforms that she felt hope, learned money management skills, and found a roadmap for repaying debts.
In January 2020, she began her journey debt free and paid off all credit cards by the end of the year. Here’s how.
Know your goal
Hudak has set a goal of getting rid of debt within 30 years, considering goals such as building wealth or buying a home. She wrote down all of her debts as they went along to get a full picture of the amount owed.