It has now been about 6 years since I graduated college and started paying off my loans. Read a little background about me here. What angers me the most about my student loan debt are the variable interest rates. For a few years my interest rates had been consistent. I was paying my monthly and whatever else I could throw at it, attempting to chip off whatever I can.

3 months ago my interest rates increased by an average of 0.81%, which bumped up my monthly payments by $11. Wow, okay fine. My interest rates were bumped up again two days ago. Another average of 0.19% was tacked on, increasing my monthly payment by another $6. So, for reasons unbeknownst to me, the bank is able to shell out $17 in addition to my payments every month.

I looked into my messages to find the following notice: “The interest rate on your variable rate student loan(s) may increase or decrease as rates such as the Prime Rate published in the Wall Street Journal continue to fluctuate.” My interpretation of that: at any given moment my variable rate can increase.

Debt is dumb

Millennials, let’s use this as a lesson. There is always a catch when borrowing money. Some people may feel comfortable with their debt. Some people say, “there’s good and bad debt.” Some people say student loans are “good debt.” In what sense? As Dave Ramsey would say, “Debt is dumb. Cash is King.” The amount you pay the bank each month on a loan should make you angry and the amount of interest tacked on should piss you off! Use that energy as motivation to pay it off even faster. Debt should not be a normal part of life!

Millennial Challenge

• What pisses you off about your debt?
• How will you plan to get rid of it ASAP?