College and Higher education have, without a doubt, become a very expensive time in life. There are frequent news reports regarding the sheer level of crippling debt that many students find themselves in following higher education, and even following advice for Saving Money for College, many Students find themselves with an uphill struggle when they leave.
The problem is further complicated by the recent downturn in the world’s economy, as there are fewer jobs available, and most salaries are relatively lower than they were. Not only do graduates have to pay for their housing and living expenses but many also have a large amount of debt which needs servicing according to their loan agreements, and even if employment can be found, a large percentage of the income will need to go on debt repayments.
However the worst thing that can the graduate borrows more additional money to try and make ends meet, it would be much better for the graduate to re-structure existing debts to make the re-payments more affordable. Many Banks will be happy to give help and advice on Debt consolidation loans or if you live in America then have a look at the Department of Education student loan consolidation options.
Debt Consolidation is where you take out a new loan to pay off all your existing loans at preferred terms, this brings several advantages:
- The new loan simplifies repayments by only having to pay one loan provider.
- The new loan may provide a lower rate of interest in comparison to the existing loans.
- The new loan may have a longer re-payment schedule allowing each monthly payment to be smaller, making managing finances easier, and should make the graduate less likely to default on payments.
Whilst over the period of the consolidation loan the graduate may end up paying a larger amount on the loan, the smaller monthly payment makes paying all the bills easier, whilst they get their career started and progressing.
If you are interested before going to discuss or applying for a Debt Consolidation loan, make sure that you get organised and are able to provide all the information that may be required from you, making sure that you are able to provide details of who you owe money to, details of all your other out goings and details of all your incomings. Having this information available will make the process easier and will provide the background to work out the best arrangement for you.
Debt repayments are tricky especially when starting out in life but there are places who will genuinely give you the best advice possible.