This is a guest post by Stewart Bradley. Stewart Bradley is a contributory writer associated with the Debt Consolidation Care Community and has written several articles for various financial websites. Though he holds his expertise in the Debt industry and has made significant contribution through his various articles, he has interest in budgeting, mortgage, insurance, short term loans, bankruptcy, credit advice and more.
Given today’s amount of student loan debt and the repercussions that can be seen all around among the youth, it can be safely said that student loan debt definitely spells doom for your personal finances any day. It depends on the amount of student loan debt that you’ve accrued for it might lead to repayments that can last for over 30 years. Today you’re young and carefree, but slowly with the passage of time things are going to get difficult especially as far as your finances are concerned. Hence, it’s rather important that you start handling your finances responsibly as early as possible.
Tips to help you manage student loan debt
When in your youth, it’s advisable that you develop a pattern of financial responsibility that’ll ensure your loan gets paid off. The quicker you do this, the better it’s going to be for your financial future.
- Don’t wait for graduation: The idea is to start managing your student loan debt before your college graduation knocks at your door. Make sure that you’ve completed the process of exit counseling. This is important as it’ll help you better understand the process of paying back your student loan debt. You might as well take advantage of this service and do pay attention to the information that’s taught. Basically the more knowledge you’ll have about your debt, the better prepared will you be when your first payment is due.
- Calculate how much you can pay: Next, do some efficient calculation. You need to calculate how much money you’ll have available. This is important for only then will you be able to determine what you can put aside towards student loan debt payments every month. Now, you’re a student after all and if it so happens that you’re not making enough to make debt payments every month, then don’t panic. However, that doesn’t mean you sit on your student loan debt either. There are quite a few payment plans available to you and surely one of them will prove right for you.
- Automate the loan payments: More often than not you might be caught splurging money on a night out with friends or at the local coffee shop. This is why it’s important to have your student loan payments automated. This doesn’t give you the chance to spend that money otherwise. Automated loan payments also ensure that your payments are always received on time. There are special interest rate incentives offered by quite a few lenders which you can take the advantage of.
- Give consolidation a thought: You could always consider consolidating your student loan debt, especially if you’re in debt with more than one lender. This is a good idea because at times you mightn’t feel confident about handling your own finances. In such a situation it’d be a good idea to take help as it’ll simplify your finances. Moreover, there won’t be any chances of forgetting your payments either.
- Get in touch with your lender: Finally, do get in touch with your lender if you’re really going through economic hardship. Keeping your lender in the dark isn’t a good idea at all. Since you’re a student there are chances that given a particular situation you might be able to suspend your payments through a deferment at least until your financial situation changes.
Keep in mind the 5 tips discussed above and pay off debt as fast as possible. This also provides you with the added benefit of increasing your credit rating.