Student loans may be a necessity for finishing college, but they can be crippling for a young adult fresh out of school. Let’s look at some ways for graduates to survive student loan debt.
Student loan debt has now crossed the trillion-dollar mark, leaving more people than ever saddled with loans they will have trouble paying for years. With the costs of attending school increasing year after year, it can be almost impossible to graduate without taking out a loan. And for those pursuing advanced degrees, these costs are exponentially higher. Here are some tips for surviving student loan debt.
Don’t Sit Out the Grace Period
Some lenders grant a grace period after graduation where you aren’t required to make payments toward your loan. This seems like a big advantage for a young person just entering the workforce, but it tends to have the opposite effect. This is exactly the time to start making your plan for dealing with your loans, and if possible, go ahead and start making the payments. By the time the grace period is up, you will already have a handle on what you need to do to make the payments on time. Plus, you will be that much farther ahead by paying down the principle.
Stick to Your Budget
Like all other areas of debt management, your budget is going to be what gets you through to the other side of student loan debt. By making a strict budget and sticking to it, you will know exactly how much money is coming in and how much is going out. This will help you to make your payments on time (and have the money to pay them!).
Keep Up the Frugal Living
Most people never live as frugally as they do during the college years. Kids with no substantial income and many of the same obstacles toward survival learn how to cope with less without being miserable. When you graduate and get the job you’ve been working toward for all those years, the temptation will be there to finally start spending some of the new money you’ve worked so hard for. But if you’ve already mastered the secrets of frugal living, this is the most important time to keep it up! By continuing the frugal lifestyle while you are young, you will be able to meet your monthly payments and set yourself up for a better financial future.
Consider Non-Profit Credit Card Debt Consolidation
While CreditGUARD doesn’t consolidate student loan debt, we can help you with overwhelming credit card problems which are very common to people with student loan debt. If you find yourself still having trouble meeting the payments after all your sacrifices and strict budgeting, consider consolidating your credit card debt with CreditGUARD’s non-profit debt management program. This program has many advantages, the biggest being that all the individual credit card payments will become one, requiring a single monthly payment. You will also be securing a fixed interest rate, and you will be able to choose which repayment plan works best for you (and your budget). And if your needs and budget change over time, you will be able to change payment plans once per year.
Debt doesn’t have to be crippling, but it must be dealt with in a straightforward and persistent manner. By strict budgeting and understanding your options, you can survive credit debt and pay back your student loans. If you are struggling with credit card debt, CreditGUARD is here to help. Call 800-500-6489 today to speak with a certified credit counselor and get started on your plan for financial freedom right away!