For some student to go to college starting university life will end with debts, and what the best way to pay your college debts? And what type of person who affected the most with student debts?
- Debts can easily damage the monthly budget for each person
- Reduce the income of people, forcing them to borrow money from other institution
- The lack of control can lead a person to mortgage their future finances and sometimes indefinitely.
- The wrong, indiscriminate and uncontrolled debt, use can lead to physical and emotional collapse of people, and their families.
The American middle class is most affected when entering and remaining in the country’s universities. Student debt reached in 2011, 1 billion dollars.
How much is the cost of a college education? Let’s face reality. College education is expensive. Includes other living expenses such as food, transportation, housing, pocket money, etc.
Student loans are the most common debt for all students. Also personal, or credit cards and loans even worse many times our parents refinancing their property to pay off debt or studies of their children.
What strategy should be implemented to pay these debts?
(1) Get organized and create a budget:
Organize debts. To address this debt, you must first put their finances in order. Examples:
• Every day 15 make the mortgage payments, car, cards.
• Now the smart phones will provide applications that help you track your receipts, payments, etc. So you have control of their accounts and every dollar you spend.
• Create an email only to their accounts.
A budget is essential for a healthy financial life and does well, it will give the funds to pay that debt.
• 40-50% housing, food, PAYMENTS, ETC.
• 10-20% SAVINGS
• 30% LIFESTYLE
(2) Pay interest loans first, those with variable rates, minimum payments on all loans.
(3) Amortize debt. To pay the principal and pay more than your minimum. When making this payment, be sure to include a note saying it is for the principal.
(4) Interest Payment Benefits – Deduct the interests of their returns. In some cases, you can deduct up to $ 2,500 or the total amount you paid in interest on student loans.
(5) Earn extra cash. Discover your hidden talents.
What can we do to make college debt is not a headache after graduation?
The smartest before applying for financial aid would be to consider and look for college scholarships and other financial aid. Examples:
Scholarships are free money.
Investigate, and make sure you meet the application deadlines.
529 Savings Plan – parents save a lot of money for education in the future of their children.
Study and work is commonly done on campus and is the most typical form of financial aid in all universities.
Financial aid programs sponsored by the state, by the University and by the companies.
Work part-time can also be a good idea to avoid debt. (15 to 20 hours per week)
If you live with parents, food, rent saves, among others.
Remember that universities are not for everyone. Although society tells us that going to college is a requirement to succeed, that’s not true. There are technical schools that offer courses such as mechanical, therapeutic massage, machinist, etc. These types of jobs offer good wages and job growth opportunities and the cost of education may be lower.
Remember unpaid student debt has a negative effect if it is not paid properly. It finished studying and start with negative credit in the workplace. Many companies will request the credit report to get to work. Start today.