Student loans at their current rate are now surpassing credit card debt. Half of American graduates in 2015 are now in debt with student loans.
The Federal Reserve is not happy with how debtors catch-up with their loans. ARF Financial suggests the following ways to get yourself out of debt.
The majority of the post-school dilemma is the pressure of finding a job and finding ways to make ends meet especially with the burden of student loans. You should keep track of your payments to ensure correct tracking. Government websites help you with tracking your payment schedules, so you won’t fall into delinquency and go into default when the interest increases.
Know the grace period for your loans. This is the time you have before you need to start paying off your loans after graduation. Knowing this makes you aware of how soon you need to find work and how long you’d need to pay off your loans. After a standard 10-year payment plan and you’re still behind, the government will offer a repayment option that better fits your financial capacity.
Instances such as unemployment or underpayment may arise. In these cases, you can request a deferment for unemployment or forbearance for underpayment. Just bear in mind that the interest might accumulate with these requests. Still, a reprieve is better than ignoring your obligations altogether.
Use an App
ChangEd is an iOS app that helps track each purchase in your checking account, rounding it up to the next dollar and transfers the money into any FDIC-insured account held by ChangEd. Every time it reaches $100, it is sent to your lenders. It’s a high-tech version of a piggy bank that automatically saves the spare pennies you have. Using this can ease up the loans you need to pay.
You shouldn’t let your debt rule your financial decisions. Keep track of your student loans and learn how to manage your money for a better future.