Chameleon 007 / iStock.com

Chameleon 007 / iStock.com

President Biden is making headlines with his student debt relief plan. Those interested in the loan forgiveness are now accepting applications, but an appeals court has put the plan on hold while it considers any objections to the plan. Still, millions of college graduates across the country are completing applications in the hope that their loan amount will drop soon.

Student Loan Forgiveness: Mark These 4 Dates On Your Calendar Now
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In a recent survey, GOBankingRates asked what people use their student loan forgiveness payments for. The results speak for themselves. The majority of respondents either don’t have student loans or don’t have a qualifying loan, but 30% of them said they would use the money for other bills and expenses. Her 10% of Americans invest it and another 10% of him put it in a savings account. Also, a minority of people (4%) spend money on themselves.

Dealing with monthly bills has become very difficult these days as inflation has significantly increased our daily costs. According to a recent report from LendingClub, a whopping 63% of Americans are currently living paycheck to paycheck. Compare that to last year, when only 57% of Americans felt financially burdened. The new report also shows that high-income earners are not immune to inflation. Her 49% of those earning six figures or more reported earning a paycheck, up from her 38% the year before. Over the past 12 months, more and more Americans have had to cut their budgets and find ways to loosen their budgets.

In preparation for these relief payments, here are some ideas for making the most of your extra money.

repay the debt

If you have any other outstanding loan or credit card debt, now is the time to cut it down. This not only reduces financial stress, but also helps improve your credit score. If you want to become financially independent, the first step is to reduce your debt.

Poll: How long do you think it will take you to pay off your credit card debt?

increase emergency funds

The outbreak of the pandemic has made it very clear that not all Americans are prepared for the unexpected. must. Start with a $1,000 goal and keep going until at least he’s cleared three months’ worth of expenses.

save for retirement

Building a healthy retirement plan takes a long time, so most experts recommend starting as early as possible. After paying off debt and setting up an emergency fund, if you have extra money in your budget, invest in retirement. The more money you can save, the better off you will be when it comes time to enjoy the Golden Age.

Learn more about GOBankingRates

This article originally appeared on GOBankingRates.com: 30% of Americans say this is how they pay for student loan forgiveness.

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