5 Strategies For Eliminating Student Loan Debt And The Related Anxiety
Overwhelming student loan debt is becoming an increasingly common issue. The average young adult enters into long-term financial arrangements with little planning and no solid execute plan. If you are currently experiencing anxiety over the student debt that you’ve amassed, you should know that there are a number of things you can do to regain control over your finances. Following are five strategies for paying this debt down and regaining your peace of mind.
Have Your Loan Payments Deferred
If you’re already missing payments or making late payments, you should talk to your lender about having your loan payments deferred. This is especially true if you have not yet reached your earning capacity within your industry. This will give you a considerable break from your loan payments without negatively affecting your credit. You should note, however, that loans from private lenders will continue to accrue interest during your deferral period. Moreover, rather than getting a break from your full loan payments, your lender may implement an interest-only payment plan. While you’ll have more time to become profitable in your chosen field, this also means that you will invariably wind up paying far more for your loans over their lifetime.
Consolidate Your Loans
Some people are overwhelmed by the high numbers they see when assessing their student loan debt. Others, however, have multiple loans from different lenders and have a hard time staying on top of the individual payments. Student loan consolidation will centralize these bills and make them infinitely more manageable. This also gives students the chance to reduce the total amount of interest they’re paying, thereby reducing the overall costs of their loans.
Resume Your College Lifestyle
Commit yourself to the same frugal behaviors that you maintained in college so that you have more money to pay down your debts. Avoid major expenses and establish a strict budget that allows you to adhere to your repayment plan. For instance, rather than purchasing a brand new car, look for a used vehicle or take advantage of other, low-cost options in transportation.
Consult With A Financial Advisor
It is often best to get debt solutions that are specific to your own, unique circumstances. Many students find themselves entering into industries that are suddenly paying far less for trained talent than they were in the past, while others may have issues that prevent them from capitalizing on the full value of their degrees. Having a financial advisor review your financial profile is the best way to find feasible solutions for managing your debt load over both the short and long-term. This professional can also offer career advice that will help you increase your earning potential based upon your credentials.