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1. Beat your debt into shape

While you may not be able to eliminate your student debt or credit card debt anytime soon, you can relieve a lot of pressure by getting them in the most manageable shape possible.

If you have a federal student loan, the government offers income-driven repayment plans that allow borrowers to make more affordable payments, based on what they earn. After you make 20 or 25 years of regular payments under an income-driven plan, your remaining debt will be forgiven.

Another simple money-saving step is to enroll in autopay, because signing up for automatic deposits will qualify you for a 0.25% interest rate reduction when payments resume.

On the other hand, if you have a private loan, your best bet could be refinancing to lower your debt faster. Assuming you have a decent credit score, refinancing could help you pay off your loan more quickly and save you a huge amount in interest.

The same strategy can work for any high-interest debt you’re carrying, like the kind on credit cards. When you refinance to a lower rate, you could free yourself years sooner.

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2. Create an actual budget

About two-thirds of millennials and Gen Zers are concerned about overspending during the holiday season, but only 38% are actually budgeting.

Consider talking to your loved ones about swapping homemade gifts, like baked goods or crafts, or agree to skip the gifts and simply share the pleasure of each other’s company. You’ll probably find some of your friends and relatives are tight on money, as well.

Even after 2021 comes to a close, a monthly budget can be a great money- and stress-management tool. Dig out a notepad and list all of your usual expenses, like groceries, credit card bills, mortgage or rent payments and retirement savings. That way you know exactly how much you can spend on the fun stuff each month, worry-free.

3. Prepare for disaster

If your anxiety comes from imagining the worst-case scenario, like a job loss or running out of money in retirement, then it’s time to prepare for it.

About 44% of the respondents in the study say they’re trying hard to save more. However, saving is only part of the picture; you’ll also want to maximize the money you’re saving.

Tuck away some savings each month into a high-yield savings account so it has a chance to grow. Normal checking and savings accounts offer next to nothing in interest.

Experts suggest keeping enough money on hand for three to six months of expenses, if possible. Knowing you have a secure stash for emergencies like a big medical bill or expensive car repairs can help bring peace of mind.

However, you’ll also want to make sure you’re investing for the future — and the best thing you can do is to start early. Even a small amount can grow into a fortune with time.

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4. Ask for help

Don’t be afraid to talk to someone if your financial anxiety is spiralling out of control — whether that’s a mental health professional or a financial planner. Building “mental wealth” goes both ways.

A good financial planner will examine your situation and help you meet your goals, like planning for retirement, managing investments and dealing with debt.

Just keep in mind that they won’t be directly addressing your emotions or trauma regarding money.

If you can find one, financial therapists specialize in both mental health and money. They can help you rethink your relationship with money, address your coping behaviors and even assist in coming up with the right spending plan.

Streamline your debt repayment

Having a single loan to pay off makes it easier to manage your payments, and you can often get a better interest rate than what you might be paying on credit cards and car loans.

Credible is an online marketplace offering personalized loan options based on your unique financial situation.

When you consolidate your debt with a personal loan through Credible, you can roll your payments into one monthly installment. Find a lower interest rate and pay down your debt faster with Credible today.

About the Author

Serah Louis

Serah Louis


Serah Louis is a reporter with She enjoys tackling topical personal finance issues for young people and women and covering the latest in financial news.

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The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.