The Credit Problems Students Usually Face

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Refinance Student Loans Benefits

Students, at their age and status, are slowly being introduced to their financial responsibilities with the number of student loans presented to them. And sadly enough, not all of them pass this particular real-life test of accountability.  In fact, a lot of them are facing credit problems, which they are likely to bear for several years after leaving college. Most of the problem they face are due to:

  1. Unusually high interest and credit line. 
    While a lot of credit card companies are extending credit lines to college students who don’t necessarily have stable jobs, they make up most of it with high interest rate and ironically, unaffordable credit line. So if students are not careful in using the cards and loans, they will end up with unfathomable debts.
  2. Increasing educational expenses. 
    Sending a child to college is very expensive. And for the student, staying in college is equally expensive. Each year, college fees go a notch higher. And so does everything else that is related to it. Such expenses include dormitory fees, books, and other learning materials, not to mention daily living allowance. As a result, students end up borrowing a bigger amount every year. And by the time of their graduation, the college student loans they acquire are higher than what they can pay off with their prospective salary.
  3. Peer pressure. 
    In college, students stay in the company of friends who could be compulsive shoppers and not with their sometimes-frugal parents. And so peer pressure becomes a factor. Friends and credit cards usually translate to shopping and buying stuff when they come together. And because of this, students end up buying items they don’t really need.
  4. Financial ignorance. 
    Because most college students are not briefed with proper credit management, they end up deep in debts without even knowing about it. High interest rates, late payment charges, and other finance charges are the fees that usually put the student borrower off-guard. And so the need to refinance student loans sooner than expected becomes necessary for them.

Student loans play an important role in college education. For one thing, these loans can certainly help them a lot because as their go through college. In a deeper perspective, student loans facilitate the achievement of a person’s dream. And because college life is expensive, multiple loans have to be secured in order to finish it. As a result, the need to consolidate student loans is there so as to gain better fund and financial management despite a student’s rather young age.

The Best 5 Tips To Help Manage Your Debts

In the current it seems that a lot people are still sinking into debt, even though the loan companies have become very strict on who they lend money to.  This article was intended to give you tips on how to help manage your debts.

Debt Free Living knows most people who find themselves in debt will struggle initially to get a handle on things and could end up even deeper in debt if they are not careful. However, there are several ways in which to get debt help to tackle your debt problem.

Top 5 Ways To Help Manage Your Debts

Prioritise
No doubt you may have monthly expenses, which you could certainly get rid of. For example get rid of any club/gym memberships, which are not totally necessary. And talking of luxuries you should also eliminate on your takeaways each week. Over the course of a month the cost can really add up.

Get A few Quotes
Next time you go to renew your car insurance, home and content insurance etc then it pays to shop around for the lowest price deal. You can save £100’s by getting quotes online when it comes to renewal time.

Pay more each month
If you already own a number of credit and/or store cards you should always pay more each month. A lot of people tend to pay back just the minimum amount and it could take years to finally wipe the debt. By paying a little extra it could shave off a few years of repayments.

Use 0% Balance Transfer Cards
If your credit rating is good and you also have lots of cards it makes sense to move your debts to cards which give you 0% for extended periods. Lots of companies give out 0% on balance transfers from other cards and they do this for anywhere up to 6-12 months. This can save you lots of interest payments each month and should be a high priority in helping to manage or reduce debts.  Check out http://www.creditkarma.com/Zero-Intro-APR/CreditCards to find out cards you will qualify for.

Secured Debt Consolidation loans
Lots of loan companies offer this type of loan. The principle is very easy in that you pool all your debts from credit cards etc into one big loan. This then leaves you with one manageable loan, which you pay back each month. Consolidation loans are very popular but are only useful if you also cut up the credit cards that got you into the debt mess initially. The loans are typically secured on your home so the interest rates are very competitive, and certainly less than a standard credit card. As you can see by consolidating your debts it can save you a lot of money each month.

Final thoughts
The above are just 5 of many ways to help manage your debts. By applying all or even a few of the debt management tips will leave you with a much lower debt exposure month on month. All you need to do now is apply the advice given and start clearing your debts from today.