Eliminate Student Loan Debt
Recent graduates find the need to eliminate student loan debt a huge undertaking, even more daunting than school. Graduation provides relief and joy as well as stress. Joy comes with completion and knowledge of a task well done. Relief comes in knowing that there is no more studying, late nights, cram sessions, or tests. Stress comes in realizing that a 6-month grace period will pass quickly and the need to pay down and eliminate student loan debt looms in the near future. The thought of repayment is overwhelming especially for those with higher degrees. Help is available and can offer students stress relief and a light in looking at the end of a debt free tunnel.
Several options are available to graduates with financial burdens. Total debt absolution is very unlikely. Defaulting to try to eliminate student loan debt becomes more serious than defaulting on a bank or other financial advance. Defaulting on a student loan will take a good credit score and make it bad. A person who defaults on their financial debt will not escape payment. Defaulting brings severe consequences later on in life. Failure to repay the government advance will lead to deductions from a persons social security check. At a time when most people could use more money in the social security check, the deduction would create more financial hardships. Better is it that thou shouldest not vow, than that thou shouldest vow and not pay (Ecclesiastes 5:5).
An individual should also not think that filing bankruptcy would eliminate student loan debt. Filing bankruptcy will result in no credit card bills, poor credit, no home, no vehicle, but still stuck with a student loan debt. Filing bankruptcy to dissolve student financial responsibilities is next to impossible to accomplish. Filing for bankruptcy to move the financial advances will lead to a long, drawn out process, with tons of paperwork and hearings. Most often, filing for such an absolution usually brings no freedom from the debit. In many cases, the filing process alone causes strain and bad scoring on a persons credit report.
Hope to eliminate student loan debt is possible, but a borrower must realize that repayment is necessary. Most students graduate with multiple government loans. A loan is not a grant and therefore repayment is necessary. Several solutions to eliminating the financial advances are possible. Consolidation offers a recent graduate the opportunity to combine all debits into one easy monthly payment. An individual needs to know that federal and private advances do not consolidate. Therefore, if a graduate has federal and student debits, the result will still mean two payments each month. However, consolidating multiple credits enables a person to find the best rates and lowered monthly payments.
Many banks, credit unions, other financial entities, and online lenders will compete to offer the best rates to vie for a persons business. Most online lenders can be more competitive and offer better rates than any other financial institution. In the beginning process, a potential borrower should do some simple research on the Internet or speak with previous graduates to find the best solutions for consolidation. An individual, who is seeking to eliminate student loan debt, needs to figure out the best scenario for their repayment option. Looking at various consolidation programs, the interest rates available, knowing a persons credit score, and how much potential monthly payments might be will prepare a person for what a lender has to say. The following are some questions that a potential borrower should ask. How much of the payment goes to the principle and how much applies toward just the interest? What payment methods are available in regards to paying toward more of the principal? Can rates be negotiated after a few good years of payments? Can a rate or loan be lowered if automatic payments are taken from a bank or credit union account? Do good grades or a high GPA help obtain a better rate? Often times, lender can offer better rates for good grades, good payment records, and more. However, some lenders will not offer those options if not asked. A good lender will help a potential borrower to know what rates are available, the different programs available, and the various options for rate reduction that would apply to the borrower.
The other option to eliminate student loan debt is to seek out methods for loan forgiveness or possible cancellation. Debit forgiveness or cancelation occurs through a few methods. An individual who works in a government, public service, or nonprofit can obtain relief or absolution. A public service worker can sometimes receive total absolution after working 10 years in a public sector, such as a teacher, nurse, or social worker. Many government agencies also help cover college tuition or help pay past bills. Anyone seeking assistance with debit forgiveness or cancellation should look into working in a government, nonprofit, or social service agency.
An individual who has no credit history or a low credit score should be aware that any consolidation process would bring a higher interest rate. If a borrower keeps current in payments to eliminate student loan debt, he or she can speak to the lender about re-evaluating the loan and its rates and conditions. The borrower needs to keep on top of his or her credit. Refinancing and consolidating will lengthen the years of payment but lower the monthly payment by up to 50%. For this reason, if an individual can pay an additional amount each month, he or she should. Once a person finds a steady and higher paying job, he or she can also begin making extra payments, which will bring down the overall finance faster. The borrower needs to speak with the lender first to find out how the extra payments apply to the consolidation. Continuing to make payments on time and keeping current with new ways to negotiate better rates and debt reduction, an individual will be able to eliminate his or her debt with less financial burden.
Eliminating Credit Card DebtEliminating credit card debt is the greatest relief a person who has lived under the bondage of debt can ever experience. For whatever reason a person has succumbed to the inundation of credit card offers, this service completely provides the ultimate high that counters the thrill that getting a new card offers. The shackles of finance charges, the noose of endless monthly payments, and the death claw of variable interest rates are broken, removed, and stilled.
However, the freedom that this process brings can be quickly reversed. The continuation of freedom through eliminating credit card debts is fully dependant upon the freed debtor. The offers will continue and will barrage the mailbox with a vengeance once the debtor succeeds. Eliminating credit card debt is almost like a red flag calling the companies to action. If there is one thing that these companies hate, it is a debtor who learns the art of financial success.
This goal can be accomplished whether the one trapped in the deepest miry pit of credit believes it or not. It takes a dedication and discipline of will more than the average person possesses. However, eliminating credit card debt requires a slow, steady process to pay them off, as opposed to the rapid depletion of balances through too frequent purchases and cash advances. The first step is prayer for the fortitude and determination to withstand the temptation once the cards are laid aside. In fact, to begin eliminating credit card debts, the cards must be physically destroyed, and any replacements at their expiration be done the same way upon receipt. All usage of charge cards must stop and repayment continue, and if at all possible at increasing amounts to hasten the payoff, lessen the finance charges, and assure the success.
The deceit of money lending is that it seems like free money, and gives one purchasing power and status. However, there are chains attached to that free money. The feeling of being wealthy soon fades as the bills mount and the finance charges add up. Eliminating credit card debts brings the true freedom. Until a person realizes that true wealth and freedom have nothing to do with being rich with money, things or personal power, they will be held captive and possibly destroyed. "A faithful man shall abound with blessings: but he that maketh haste to be rich shall not be innocent. ...He that hasteth to be rich hath an evil eye, and considereth not that poverty shall come upon him". (Proverbs 28:20,22) Consider the value of blessings that have nothing to do with money or credit. Eliminating credit card debt will free the shackled debtor to realize the true blessings of life - not being indebted to the creditors.
Eliminate debts that plague a lot of families with daily stress by learning how to handle finances effectively. Anyone can eliminate debt through budgeting, debt relief options, wise savings, future investments, retirement and home ownership before you are too old to enjoy the benefits! Financial experts document that most US households owe more money than they can afford to repay because they do not choose to handle their money responsibly. Approximately 2 million end up in bankruptcy, and most are nearly 10k in debt through credit card expenditures. One in every one hundred homes is lost to foreclosure and one in every five home mortgage payments is late. It is important to consider today how to eliminate debts that threaten most American households.
A financial education regarding how to manage day-to-day finances seems to be the need of most homes. Financial education can offer information about how to curb out of control spending and how to eliminate debt. There are many professional sources available that can provide solid, financial counseling and advice. Non-profit agencies such as Consumer Credit Counseling Agencies, Christian financial ministries, and business organizations provide services and help educate anyone who wants to take charge of their finances.
It usually takes a two-part approach to effectively restore financial sanity to a household. Education and application blend for the perfect recipe for financial success in any household who seriously wants to eliminate debts and secure financial freedom. If a consumer is at a critical place with backbreaking debt looming over the horizon, some emergency measures can be taken through consolidation or settlement. This can provide some immediate relief as he or she attempts to work through a process, set up budgets and gain self-control over spending habits.
Admitting financial failures and wanting to live a better financial life are great steps in handling money wisely. Keep close to God's word. He talks about money a lot and has VERY specific instructions on how to use the money He has entrusted to each person. In Philippians 4:12 Paul writes "I know both how to be abased, and I know how to abound: every where and in all things I am instructed both to be full and to be hungry, both to abound and to suffer need."
It is important to find the best financial management source that can help each individual on the road to financial safety. Many Christian financial ministries offer financial counseling from a biblical perspective including how to eliminate debt and how to set up family budgets. These ministries can provide unique insight as to the purpose and practice of fiscal responsibility. Other financial specialty businesses can offer sound advice through their own programs. Counseling, tips, advice and financial information important to eliminate debts and restoring financial freedom can be found free of charge throughout many financial management sources.