This Texas woman used $11K in student loans to fund her lifestyle and Caleb Hammer said she 'can't afford a single cent of it' — can you relate? Here’s how to take control of your debt
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The stark reality: nearly 43.6 million Americans have outstanding student loans, according to the Education Data Initiative.
For many of these borrowers, the funds were essential to their education, but for some — like 20-year-old Abigail from Fort Worth, Texas — the money was used to fund a lifestyle upgrade.
On a recent episode of Caleb Hammer’s YouTube show, Financial Audit, Abigail admitted the student loan she took out wasn’t necessary. “I don’t need to use them like I use them, I know that,” she said.
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“You’re borrowing from the government, potentially from taxpayers,” Hammer responded.
However, according to a recent survey, Abigail isn’t alone in her habit of misallocating funds or her addiction to spending money — but don’t panic, there are ways you can make cleaning up your financial act a little easier.
Doom spending
Roughly 35% of American Gen Z’s surveyed by Credit Karma admitted to “doom spending,” which it described as a pattern of compulsive spending (think: clothing or high-end skincare products) that helped people cope with anxieties about the economy and world affairs.
Abigail seemed to be on a similar path when she appeared on Financial Audit.
If you can relate to Abigail’s plight, consider using online lender marketplace Credible. Credible lets you compare personal loan offers based on your needs.
Abigail's college is relatively close to where she lives and is, as Hammer described, “insanely cheap.” Nevertheless, she managed to accumulate $11,000 in student loans.
Through Credible you can refinance your student loans to help make repaying your school debt a little less stressful.
Credible allows you to compare refinancing rates from up to seven lenders for free without dinging your credit score.
In addition to the student loans, Abigail has $8,000 in auto loans for a car she admitted she didn’t need to buy in the first place. She also racked up thousands of dollars in credit card debt, which could have been avoided since she currently lives with her parents and doesn’t pay for groceries or utilities.
If you, like Abigail, are juggling multiple loans from different lenders, you may want to consider a debt consolidation loan through Credible to make paying off debts easier.
By doing this, you’ll be able to pay down your debt with one monthly payment, rather than making payments on multiple loans at varying interesting rates.
Read more: Cost-of-living in America is still out of control — use these 3 'real assets' to protect your wealth today, no matter what the US Fed does or says
Get back on track beyond debt
When Hammer asked Abigail if she’d “just given up” she said “probably.” She added, “That’s been my problem for the past few years: knowing I’m hurting myself and just not doing anything about it. I just feel like I don’t have any self-esteem.”
If you're like Abigail and the prospect of getting back on track financially is overwhelming, consulting a financial adviser may give you some relief.
Zoe Financial makes it easy to find a financial advisor who can help you organize your finances and get the advice you need to reach your goals.
Just answer a few questions about yourself, Zoe Financial will match you with a curated list of financial professionals. You can then book a free, no-obligation consultation to see if they’re the right fit.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
