Credit & Debt
Six months after college graduation, I got an email reminder for a bill – student loans! At that time (June, 2012), repaying those consumed my financial life. However, as I watched house prices in my hometown fall and interest rates dip to as low as 2.8% for a 15-year fixed mortgage in July, 2012, that would all change. I knew I had something else to work for.
I handle my finances with an "out of sight, out of mind" mantra – basically the opposite of how we're taught. If I overspend during the weekend, I wait as long as possible to check my balance the following week. If I receive an unexpected bill, it immediately goes into the "I'll do it later" pile. Fortunately, however, I always end up getting it done.
It’s a common question that people with credit cards and other forms of debt ask themselves: “How much is too much?” This is an important question to ask yourself before you let yourself get in over your head.
Graduating from law school and business school in the aftermath of the Great Recession and a particularly weak legal employment market meant that I had as much debt as a first-time home-owner and little to no steady income. As I looked for permanent work with little success, the first of my daunting, monthly debt payments loomed large in my mind. Not only was there no way for me to realistically make the mortgage-sized debt payments each month, but throwing in the towel was not an option.
My husband and I worked diligently to pay down our debt, ensure our credit scores were favorable, and have a chunk of cash saved in the bank. At the time, we were renting and found that we were quickly outgrowing our small, two-bedroom house. We searched for a new house to rent and realized that the renters' market in our area greatly favored the renter rather than the tenant. Prices were outrageous.
Studies about the Millennial Generation bring up a number of generalizations. They expect praise. They're attached to their smart phones. They have college degrees, but they also have student loans, no meaningful job, and no major life purchases to speak of.
You're ready to launch into college, springboard into a career and vault into a happy, successful life. There's just one obstacle standing in your way: money. Yes, you've come to terms with the fact that you need a student loan. You may be a little anxious about it, or you may be downright petrified. But with a little planning and know-how, you don't have to fear the student loan. Here's what you can do to prep for your loan and take the anxiety out of the process.
Graduating from college is exhilarating. You're entering the real world, about to make it on your own. But if you're like most grads, the weight of your student loans quickly sets in, and facing this reality can be rather intimidating.
I recently got a letter from my loan creditors that gave me the chills. One of my private loans is out of the grace period, and paying back over $35,000 in college loan debt is daunting to say the least. Here are two methods that I am going to employ in order to start effectively demolishing my debt and moving closer to financial freedom. I think they can help you too.
We're just like Fry from Futurama, thrusting a fist-ful of cash at people offering goods and services and shouting, "Shut up and take my money!"