Ditching student loan debt is something that everybody can relate to. It’s no secret the system is flawed. Children are taught an outdated curriculum in school and are forced into a pitfall of financial worries from the moment they agree to student loans and the terms in which he or she will pay the loans back.
Before knowing what it’s like to live on their own, kids are forced to choose a major of study which rarely turns into a career path. They are not taught personal finance like how to open a bank account, nor are students taught how to do their taxes, apply for a mortgage, compare interest rates, invest into the stock market or change a diaper.
Basic life lessons are left untaught in grade school, leading students towards taking massive amounts of student loans to one day receive the most expensive piece of paper of their life that may or may not result into a well-paid job or even a paid job at all.
Ditching student loan debt
Education is a good thing. However make sure you understand the enormous debt amounts and high-interest rates you are inheriting from committing to a university without a plan in place to pay it back. Not everyone can qualify for a scholarship so it is understandable when student loans are so necessary.
Loans sit on students’ shoulders the day they walk to collect their diploma. Student loans can haunt recent college graduate students as the interest piles up on the principle loan amount every day. Every day that passed, you can be hit with a $0.25 fee or more that is added to your overall principle loan amount. It feels like a never-ending situation without expediting the process. Ditching student loan debt will help reduce your added interest rates you are paying.
Make a plan to ditching student loan debt
While you might crave a new car, an apartment of your own and independence from your parents, your student loans are going to hold you back for years if you do not take care of it quickly. Instead of paying off the minimum amounts, you want to take care of your loan payments with as much money as you can afford to speed up the payment process.
The more you pay towards your loans, the sooner you move towards reaching freedom of any student loan debt. You will be tempted to reduce your monthly payments so you can enjoy a bit more cash on hand to spend, but you are better off to bite the bullet and continue to use your money towards paying off any outstanding student loans.
Consolidate your debt to reduce your payments
One helpful strategy people like to do is consolidate outstanding debts with certain financial providers. Consolidating student loans and/or credit card debts into a single payment can help benefit your credit score in the long run along with simplify your monthly outgoing payments.
There are many different options to choose from when deciding who to trust with consolidating your loans. Depending on your financial assets, your income, your current liabilities and financial history, you may qualify for reduced interests rates that can help you save money while paying back your loan.