Don’t Let Student Loans Ruin Your Financial Future

71-1.jpeg

It is well-known that millennials are flooded with student debt. They have obtained bachelor degrees long ago, but they borrowed the most to earn those degrees. In 2018, the remaining student debt in the United States exceeded $1.48 trillion and almost half the credit card debt of America.

The study showed that the average net value of a millennial student loan is just about 25% of a student loan without it. Moreover, the data available from debt consolidation attorneys in OKC suggest that student loans do not help save for retirement or buy homes for some of them.

When they were young, Millennials borrowed students' debt, which now has a major impact on their adult lives. The long-term effects of student credit debt have a wobbling effect on many other aspects of life.

Getting a Home

Housing is the area that most deeply sees this impact. Millennials grew up believing in the common American dream to buying a house and starting a family. However, these dreams have been held back for many of them, primarily because of debt. Private ownership of 24 to 35 year-olds decreased by 9% points between 2005 and 2014.

Credit Card Debt

Student loan debt and credit card debt go hand in hand as student loan debt has long-term consequences. The most common form of debt in the case of student loans is credit card debt. The long-term impact of student loans may prevent them from paying out debt from a credit card.

Plan for Asset

In addition to delaying home buying, millennial students face other long-term debt consequences. It affects other financial choices including the purchase of automobiles, continuous education and financial investment for carrying student loans. Millennials are expecting to make these big-ticket purchases until later in life when they have paid off their student loans.

71-2.jpeg

Be Active To Get Rid of the Burden

Although you feel that at a young age you have been tricked in debt, it will just get worse if you bury your head in the sand over your student loans. Try to be proactive in paying off your debt rather than giving up hope.

  • Create a budget to see if every month you can spare any additional cash. Search for areas where spending can be reduced.

  • Find out what steps you can take to raise your pay when you are working. To increase your salary, consider changing jobs altogether.

  • You can also examine state and private loan repayment programs for your private or federal student loans.

  • Finally, certain borrowers might benefit from consolidating student loans. Ask debt consolidation attorneys in OKC for details. Here it is in a nutshell.

The student loan consolidation consists of two types: federal and private. Refinancing is often called private consolidation. These processes are often misleading, but very different. Here's how the following is:

  • The consolidation of the Federal student loan combines several federal loans into one federal loan via the Education Department. Some of your federal loan repayment programs may need to be consolidated, but your federal consolidation will not lower your interest rate. By extending them, you can lower your payments.

  • Refinancing of student loans, also known as consolidation of private student loans, is a financial step taken by a private creditor. By getting a lower interest rate, you can save money.

If you are unsure about your financial decision to get rid of the student loans, consult the best debt consolidation attorneys in OKC at Chris Mudd and Associates.

** Disclaimer: This blog post does not constitute legal advice, nor does it create a client-attorney relationship.