Student loan debt is so bad that it’s now considered a crisis, with over $1.5 trillion owed among 44 million borrowers in the U.S. alone. These astronomical numbers are second only to mortgage debt and a number of students are suffering with the burden of paying off student loans well into adulthood.
People who graduate with student loans are often trapped in a vicious cycle of constantly being in debt because of an inability to keep up with payments. Even if a student manages to find a job right after graduating, the income alone is often not enough to keep up with student debt as well as the standard cost of living (especially when rent is high). In turn, young adults resort to relying on credit cards to pay for basic things like food, transportation, internet, etc., pushing them even further into debt.
So what can be done to offset the burden of student loans? While there are options out there, you’re going to have to do a little leg work to find them.
Instead of paying off all of your loans from multiple creditors and at different interest rates, you can consolidate your debt into one single monthly payment. The Credit Canada debt consolidation program is a great option for people who need a helping hand when it comes to managing their bills and money.
You’ll work with a certified Credit Counsellor who can combine all of your unsecured debt into one monthly payment. They will also negotiate with your creditors on your behalf to either stop or lower the interest on your debt. From there, they will work with you to create a plan with a specific end date as to when you will pay off everything you owe.
The goal is to create a repayment plan where you pay off your debt rather than just paying the interest on your debt. With a lower or zero-percent interest rate on your debt moving forward, every payment you make goes towards paying down the principle rather than just covering the interest. This is extremely helpful for people who have more than just student loans to deal with because managing other debts can make paying off your student loan much easier and more manageable.
A number of students are familiar with living on a budget, and it’s something that many adults are going to have to keep up with if they want to pay off their debts. There are a number of useful tools out there for building a budget that works for you, but the most important factor is that you stick with it. Easier said than done, but a budget is the number one way to pay off your debt and secure money for yourself in the future.
Hold off On Major Life Changes
While it’s not something anyone wants to hear, a number of young adults are holding off on major life events like getting married or buying a home in order to save money. With the average cost of getting married sitting at over $30,000, it’s no wonder that couples hold off from tying the knot. Buying a home and settling down to have children is even more expensive, so it’s best that you have your debts in order before even thinking about making these huge financial commitments.
Despite the grim picture, there’s light at the end of the tunnel. Keep working towards your goals and you’ll eventually get there.