How to manage student loan debt while underemployed?


“Kayla has a low FICO score, car debt, student loan debt and credit card debt. She is also underemployed making $10 an hour with zero savings. How should she handle her debt? She should keep making the minimum payments towards her student loans and tackle the debt with the highest interest. By doing this she will improve her FICO score. When her credit score improves, she should request her credit card interest rate to be lowered or do a zero-balance transfer. Kayla should also focus on acquiring new skills/certifications relative to the industry and desired occupation through online courses via This in turn will help her land a better job with a higher salary. While paying off debt she should also set up a savings account with automatic withdrawals to start building an emergency fund. For example, she can start saving $10-20 a week into a high yield savings account.”The Student Debt Manifesto

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