Dear Dave,

I’ll be graduating college in May with a degree in elementary education. I’ll have a job at a local school waiting for me, and this will be the first time in my life I’ve made more than minimum wage.

The great news is my new job will raise our household income to over $100,000 a year. The bad news is we’ve got $18,000 in student loan debt, $6,000 in credit card debt and $3,000 to pay off from a car repossession a few years ago. How do you recommend my husband and I manage our upcoming increased income?

— Hannah

Dear Hannah,

Wow! Congratulations on your degree, and the decision to get serious about a plan for your money. I’m so proud of you for all the hard work you’ve put in to help make your lives better. And I’ve got some more good news for you.

If you two keep living the way you have been for just a little while longer, and put the rest of the money towards debt, you can have it all knocked out in no time.

Remember, just because you two are making a lot more money does not mean you should start spending a bunch on fun stuff and shiny new toys.

In fact, if you know enough about the numbers of your upcoming new job, you and your husband should sit down together now, and practise working out a written monthly budget based on your new income. Give every dollar a name before you spend it, and don’t forget to work the debt snowball, too.

List your debts from smallest to largest, pay minimum payments on the two largest and then attack what’s still hanging from the car repo with a vengeance. Chances are if that debt has enough age on it, you might be able to work out a deal to pay 50 cents on the dollar.

Once you’ve paid that off, roll the money from that payment over, and apply it plus any other cash you can scrape up towards the credit card debt.

After all that, you’ll have a bunch of cash to throw at those students loans and get all that stuff off your backs for good.

Hannah, you and your husband have the perfect opportunity to change your financial world — and your lives — for the better. Just be patient a little while longer. If you’ll follow my advice, I guarantee you’ll love where you land!

— Dave

• Dave Ramsey is a nine-time national bestselling author, personal finance expert and host of The Ramsey Show. He has appeared on Good Morning America, CBS This Morning, Today, Fox News, CNN, Fox Business and many more. Since 1992, Dave has helped people take control of their money, build wealth and enhance their lives. He also serves as CEO for Ramsey Solutions