debt

Financially Struggling Baby Boomers Common

Written by adminAugust 14, 2018

When we talk about debt in the United States, and how total household debt is at its highest level of all time ($13.2 trillion), it’s easy to think, “Those darn kids and their fancy houses and useless degrees!” In reality, a lot of older folks are financially struggling as well.

We’ve constantly written about millennials and their apparent lack of financial understandings that has lead us to this point, but it’s certainly not just the younger generations. Even the oldest generation has a part to play in our current economic epidemic.

Baby boomers 55 years or older have an average of $73,211 worth of debt per household, according to a report from U.S. News.

In reality, this debt isn’t from a lack of financial literacy, but the fact that they were ill-prepared for how the rest of their life turned out. Baby boomers are living longer and are much healthier than their parents and grandparents, thanks to advances in medicine and technology.

As we’ve previously reported, women are particularly at risk, because they are living longer than their husbands and haven’t been the ones to get active about investment or saving money. That role has always belonged to the men, but it’s something that needs to change.

Americans Aren’t Saving Money

According to Bankrate, 2/3 of Americans have no money saved. They wouldn’t be able to scrape together $1,000 if they had an emergency. It’s tough out there for average Americans, who can be bankrupted by a single event, like a car accident that forces them to miss time from work.

For the older generation, the risks are much higher. They’re much more vulnerable during events, like natural disasters, a death (usually their spouse), or a crippling illness. And when these issues crop up, in a much more frequent fashion, they don’t have the time out-earn these problems.

Also: http://financialhelpers.com/you-wont-believe-how-much-debt-has-changed-since-the-great-recession/

This is a major issue that can be passed down to their children when they die. There have been numerous cases where a debtor will come knocking to collect debt owed after a parent passes, especially if they left their house and there’s money still owed.

For seniors in this situation, the solution is the same for every American. Because they are extremely vulnerable financially, they must be prepared for everything that might happen. They need to better budget their income by figuring out how much debt is owed.

Getting Help

Making a single phone call to Financial Helpers can help. We are experts at helping people just like you climb out of their debt and find financial freedom. You can call us at the number below:

Call Now 844-332-2079

Without help to consolidate or refinance your loan, you’re going to have to figure out a way to do it on your own. 1/3 of all Americans don’t even have a budget plan, and it’s hurting them later on. When an emergency happens, they’re worse off financially than they were before. This sinks many good families into bankruptcy.

Seniors have a few other areas of help they may not realize. They are the generation that is least likely to be computer literate. Various apps and programs are designed to make it easier to financially budget

One of those apps is called Tiller, which doesn’t require extreme computer skills to learn. It’s simple to use and can help you get on track with creating and maintaining a budget. There are apps like GoodRx that can save you 90%.

No matter the stage of life you’re in, it’s always a good time to learn financially good habits. You’re not exempt from needing to save, even if you’ve been around awhile and never had any problems before. Times have changed, and so has the way we need to save.

Written by adminAugust 10, 2018

Life Style

There’s no doubt that most Americans struggle with their personal finances. When it comes to managing money, most of us wouldn’t earn a passing grade due to financial troubles

The proof of that is in the record high debt that continues to rise well after the Great Recession has come and gone. Such a financial disaster should’ve taught us a fine lesson about debt. It doesn’t seem to have had much impact on the spending habits of most Americans.

It’s this lack of financial literacy that is 1) going to send us into another recession and 2) making us physically sick.

A workplace wellness company, Financial Fitness, recently released a study that found having increases chances of getting heart disease and diabetes. This is because stressors cause weight gain and unhealthy behaviors that lead to illness.

Financial Troubles Can Be Sneaky

Another study revealed that most Americans may not even realize they’re in trouble or where their sickness is coming from. Raddon, a financial service company, found that 44% of people surveyed believed they understood their finances well, but less than half of them passed a financial literacy test.

Only 6% of them scored a 90% or better. This is truly enlightening to the typical American mindset when it comes to money. We want those better things for our lives and for our family, but being in that much debt is putting untold stress on our minds…and our bodies.

Also: http://financialhelpers.com/4-things-every-parent-should-know-about-student-loans/

Of course, our mind has a powerful influence over the rest of us. According to the American Psychology Association, the number one stressor in most people’s lives are money issues. It must be difficult not knowing from year-to-year how the economy will do or if you’ll remain employed. Everything is getting more expensive while wages remain flatlined.

Still, that worry doesn’t seem to have any impact on many of us actually taking the time to properly educated ourselves on these issues. That stress caused by financial troubles is taking a toll.

“If stress becomes chronic, it can lead to significant health consequences. It’s important to remember that there are steps that people can take to manage their stress in healthy and productive ways, like exercising, spending time with friends and family, and finding ways to get involved in your community, including making your concerns known to policymakers,” says APA CEO Arthur Evans Jr.

Avoiding the Doctor Like the Plague

To make matters worse, Americans avoid going to the doctor…because they can’t afford their medical bills and/or insurance. 36% of Americans say they simply don’t have enough money to live a healthy lifestyle that includes going to a gym, eating healthy foods, and regular doctor visits.

This proves that if you want a healthy mind and body, one of the best ways to do it is by educating yourself on financial matters to help release that every day stress. Calm your mind. Have an emergency stash saved, Save money. This will go a long way in improving your physical and mental well-being.

The problem is, 84% of Americans have never been involved in any type of financial program to improve their knowledge. 51% say learning about money and investment is on a ‘need to know’ basis. They’ll learn it when they’re ready to apply the knowledge and start investing.

Another issue is most Americans sort of feel invincible, despite the stress that’s eating away at their peace-of-mind. We did a story recently about how most millennials believe they will be a millionaire at some point in their lives. Financial troubles are keeping them from reaching that goal. They aren’t saving for retirement, either.

Realistically, these issues are a recipe for disaster.

David Irwin, the president of Raddon, believes banks could be the key to helping Americans figure out a better way for them to invest.

“Financial institutions have a powerful role to play in developing financial literacy today. A majority of customers who participate in a financial education program find value. Providing financial education can help institutions to stand out and build depth with their customers. Closing the gap between customer perceptions of their own financial literacy and reality will help them develop the skills to build financial health.”

Written by adminJuly 30, 2018

Saving

It’s is super easy to get into debt. Life is chaotic and when someone is throwing around what appears to be ‘free money’. If you need (or really want) something hard enough, you can get the financing for it.

There are a number of Americans who stuck to their guns, followed intense programs, and got out of debt once and for all. The problem is, do they stay debt-free, or do they see themselves as having done it once, they can do it again?

It’s a truly liberating feeling to get out of debt, but a little less than half of the country spend more money than they have. A lot of it has to do with the cost of everything going up and wages staying low. If we can’t afford healthcare or to save money, then it’s quite easy to find ourselves pulling out the plastic to afford everyday costs.

In order to stop yourself from getting behind on payments, you have to be proactive with your spending. If you can’t afford something, don’t buy it. In the end, what is the point of eventually paying A LOT more money for something down the road just so you can have it today?

Here’s what you need to do in order to protect yourself.

1) Have a Savings Account

This might sound simple, but most Americans don’t have one! They don’t have one for emergencies, for saving up for vacation, or to pay for things down the line they might need or want. If they had such an account, it would save them wasting extra thousands of dollars down the line to pay for things.

If you have an unexpected bill, you have our emergency savings. If you decide to buy a house and need a down-payment, you have savings. If you break your arm and are out of work for a few weeks, you have savings. It’s better to save money now rather than something big happening later and having nothing at all.

2) Use Cash

This is a big one. Use cash to buy things. When you budget your money, stick the cash in an envelop to prevent overspending. For example, if you set aside $150 for groceries, put that amount of cash aside. When you go to the store, you won’t be tempted to overspend thinking you can just pull out the plastic.

If you want to prevent credit card debt, get rid of the credit cards.

3) Budget, Budget, Budget

This goes with point two, but staying strict means keeping on a budget. Know what you want to spend on things and keep it at that level. By budgeting everything, you will have a better chance at saving money to go into your emergency savings fun by not overspending.

It’s also easy to incur late payment or overdraft charges. If must have a credit card for when times are tough, don’t leave your balance hanging. Pay it off as soon as you can.

If you were able to overcome debt in the first place, these tips and strategies are things you already know work. It’s important to keep up with them to keep your financial freedom. Saving money will always be the preferred way to go over piling on more debt and getting deep once again.

Written by adminJuly 26, 2018

Life Style

Millennials get a lot of slack for being a generation who grew up in mostly wealthy households without much struggle. Many still live at home with their parents, well into their 20s and 30s.

Yet, despite a major debt crisis, crushing student loan debt impacting them directly, and an economy that’s still recovering from the Great Recession, Millennials remain a financially optimistic group of people.

TD Ameritrade conducted a survey that found 53% of millennials believe they’ll become millionaires in their lifetime. A majority of them believe they’ll retire early, before the age of 56.

Despite this burst of optimism in their ability to gain wealth, very few millennials actually know how to make that dream a reality. They haven’t developed a knowledge in how to properly invest and save their money.

The cruel reality is, the age of retirement is getting pushed back longer and longer, with many experts predicting that a lot of retirees will be forced to work until they die. Social security is dwindling to nothing and younger generations are taking on so much debt, it’s nearly impossible to save during crucial years when they need to start.

Millennials simply don’t have the financial literary yet to make a realistic retirement goal. Mass Mutual wanted to find out how many people from this generation actually knew about financial matters, and only 17% of 500 millennials got a perfect score.

As they age, they will be faced with the harsh reality that they simply weren’t prepared for life on their own.

This article isn’t meant to be a judgement of millennials, but a wake-up call. Life won’t turn out how they expected and they must be confronted with that reality as soon as possible if they hope to make it. The future looks grim, so they must be prepared for the fight ahead, as they will endure harsher obstacles than past generations did.

In fact, millennials will have to start saving money in their early 20s, which seems incredibly difficult if they’re living at home due to the high cost of rent and tremendous student debt weighing them down.

The best thing they can do for themselves is become educated on their options. If you’re paying back a lot of student debt, it is extremely difficult to save money. There are government programs that can help you pay off those debts MUCH sooner. Financial Helpers can help you navigate those tricky waters before the programs are shut down for good.

Give us a call to learn your options at:

Call Now 1-844-332-2079

Another thing is to look at ways to curb spending so you can pay off your debts sooner than anticipated. That’s why a lot of millennials still live at home. They simply can’t afford their own place and all the bills that go along with it.

But rather than piling debt on top of debt, millennials can use public transportation, not eat out as much, learn better budgeting skills, get a side gig, make coffee at home rather than the expensive coffee stores, and don’t get a credit card unless it’s low interest.

These steps will help, but it’s up to the person to take the time to gain better financial literacy and have a more realistic picture of their future finances.

Written by adminJuly 23, 2018

Credit & Debt

When the economy starts to surge, Americans begin having confidence in their spending habits. But rather than paying cash for these things, we’re turning to our credit cards more than ever.

43% of Americans have been carrying around a card balance for longer than two years. The average credit card debt per household has spike to over $16,000 and pays over $1,200 in interest each year!

Collectively, that totals to $104 billion in interest payments per year. That’s a lot of money! The bad news is, it’s up 35% from 2013. That says that most people didn’t learn their lesson from the Great Recession and continued to pile on more debt than ever.

As the economy continues to rebound, it means interest rates are only going to spike higher. My March of 2019, they rates are expected to climb by 10%, so those already high interest payments will exceed $110 billion. These rates are soaring faster than mortgage rates, and yet, it doesn’t seem to bother Americans.

In the first quarter of this year alone, household debt rose $63 billion to a new record of $13.21 trillion. This is getting to epidemic proportions and could lead to a new recession in the near future. Economists are startled, to say the least.

With personal debts slated to get much more expensive in the coming years, you have several options now to help settle your debts and pay a lower interest rate. It will require you to be proactive and to stop accumulating more debt.

One of your options involves consolidating and refinancing your debts with Financial Helpers. All it takes is a single phone call to see what your options are and we’ll help create a plan that works FOR YOU. If you can refinance your debts, it will lower your overall interest payments, saving you thousands of dollars. Give us a call at the number below:

Call Now 1-844-332-2079

Other options include cutting back on your spending so you can afford the higher interest. Yes, the economy might be soaring, and you might be on tract financially, but you have to ask yourself where you’ll be if you lose your job or if the economy hits the toilet.

You can choose to tackle the debt with the highest interest rates first, but it’s not going to help you if you keep borrowing money for things.

Overall, you’re going to have to take your budget seriously. We’ve revealed how a lot of Americans simply aren’t as financially literate as they should be regarding how they make and spend money. Because of that, they often find themselves in trouble, fail to save for emergencies, and often have to work well past retirement age because they couldn’t save.

Don’t put yourself in that position. Give Financial Helpers a call and we’ll help you get out from underneath this heavy burden once and for all.

Written by adminJuly 18, 2018

Credit & Debt

If you feel you’re at the end of your rope financially, you might think the only option you have is to declare bankruptcy.

It’s a scary option for many Americans. Dave Ramsey, the finance expert most of us have heard on the radio, says bankruptcy is on the list of some of the worst life-altering events we can face, right up there with divorce, the loss of a loved one, and getting sick.

Every year, close to a million Americas file for bankruptcy for a variety of reasons, like debt that got out of control or an unforeseen event that the individual wasn’t prepared for. Medical bills, for example, are often one of the major problems Americans face that often lead to bankruptcy.

Here’s the thing about bankruptcy: it’s not the end of the world. Life will be tough for a while, as your credit will have a huge black mark on it, but there’s no reason to fear it. There are strategies you can try to prevent bankruptcy from happening and ease the burden you currently feel.

Let’s look at five things you can try:

1) Debt Settlement/Consolidation Negotiation

Here’s one of the best things you can do to get rid of your debt. Your debtors and collectors want their money. They’re often willing to negotiate with you if it means they get paid back what is owed.

If you have more than one debt, you can consolidate those debts into one payment with lower interest. You can enter a debt settlement with your creditors that ultimately lowers what you owe and can reduce the repayment schedule to something more manageable.

Ultimately, these debts allow you to take charge of your debts and Financial Helpers is here to help you do just that. We love to help people get out of debt and have successfully negotiated with debtors to consolidate debt, lower payments, and even reduce the overall amount due.

To find out what your options are and to see how we can help, please give us a call at the number below.

Call Now 1-844-332-2079

2) Sell Property

This is a difficult step, but it can help you prevent bankruptcy. Bankruptcy doesn’t just clear away your debts as some people believe. All your property and belongings go up for review. The trustee in charge will decide what they want to liquidate to settle your claim.

Either way, it’s time to cut back on assets. If you can avoid bankruptcy by parting with stuff, do it. It’s time to make better financial decisions. Get rid of that second car. Sell the valuable antiques. An appraiser can help you figure out the value of your belongings. With bankruptcy, you’ll have much less control over what they decide to take to settle the debt.

3) Don’t Be Afraid to Ask for Help

Sometimes in life, we have to swallow our pride and ask for help. A sibling, parent, and close friends will want to help you get out from underneath this burden. There are other options as well, such as starting a GoFundMe and sharing it on social media. This is no time to let fear get in the way of something that can help you get closer to financial freedom.

Just be honest. People who love you will want to help. Most of us go though difficult struggles and loved ones are always there to help each other endure them.

4) Restructure Your Mortgage

One of your biggest expenditures is your mortgage. By restructuring it, you can save a lot of money you can then apply to the rest of your debt. It also makes your monthly payments cheaper, so if you’re at risk for having your home foreclosed upon, this might be a great way to prevent that from happening.

You can also choose to refinance your mortgage, which means lower payments, but extended out longer. This will save you a bit of money on the front end. Once you pay your debts down, you can start making higher payments on the mortgage later to get back to where you were.

5) Make Sacrifices

This is the toughest option of all, but you’re going to have to do it if you want to survive without going it bankruptcy. Take a good look at your budget and see what you can get rid of. Again, do you need that second car? Can you carpool or take public transportation? Can you get rides from a coworker for a while?

Instead of eating out a lot, save money by cooking your own meals. Lower your cable package or cut cable altogether. Consider not spending money on a family vacation and instead, apply it towards your debt. If you can save money, do it! It’s a short-term sacrifice for big time results.

Written by adminJuly 12, 2018

Student Loan Consolidation

We’ve covered the ongoing student debt crisis extensively here at Financial Helpers, and we’ve made it our mission to help graduating students know how they can solve their debt problem as quickly and efficiently as possible.

Part of that is having the knowledge to understand how your student debt works and how to tackle it in the future so it doesn’t come back to haunt you. Life can be difficult with this debt, as one small mistake can destroy your credit for years to come.

The best thing to do is know how to handle your debt going in and have a working understand of the credit system. There are three outcomes that can result from your handling of student debt.

1) It can lower your score. (15% of students)
2) Your score can remain the same. (63% of students)
3) You can improve your score. (22% of students)

It almost seems miraculous that you could walk away from student debt with a better credit score than when you went in, but it’s definitely possible if you know what you’re doing.

When you have a higher credit score, you can refinance your loans. To learn how that works, you can give us a quick call today to see if you qualify and to inquire about existing government programs that can reduce your overall debt. It’s worth a quick call if it means saving thousands of dollars over the life of your loan. You can reach us at:

Call Now 1-844-332-2079

It all comes down to personal behavior towards money. Those who increased their credit score were more proactive about taking care of the debt. They kept their credit card balances down, was never late on a payment, and acted to lower their overall payments.

Those who hurt their credit score ended up borrowing more money and added as much as 78% to their overall balance. Missed payments STILL add interest to your loan, so if you’re not regularly paying down the balance, you could be increasing it.

There are 5 specific criteria that are used to determine your score. Make sure you line up with all 5 and you’ll do well.

1) Your payment history. When you apply to borrow money, you give your word that you’ll pay it back. If you keep your word and make on-time payments, that will reflect well on your overall record. It’s a sign of trust and totals about 35% of your score.

2) The amount you owe. One consideration that will be made is how much debt you currently have. If you have a lot of debt, are maxed out on your credit cards, and keep trying to borrow, that will reflect negatively on you. This is about 30% of your score.

3) Your total credit history. Making a couple on-time payments won’t reflect much on your score, but if you show your reliability over time, it can help nudge your score a few points higher. This is about 15% of your score.

4) Are you new to the game? About 10% of your score is made up simply by how often you apply for credit. If you have a lot of attempts, it can reflect as bad behavior versus someone who isn’t constantly applying.

5) Do you have a variety of debt? If you’re able to successfully manage debt across different spectrums, then you’ll increase your score. For example, if you have a mortgage, credit cards, and student loans and you’re paying on them, you will be more trustworthy. This makes up the final 10% of your score calculation.

Again, it’s all about behavior. If you have an active loan, it’s the best way to build your credit and show you can be trusted with other types of debt. Sadly, studies show as much as 43% of students with student debt will default in the next 5 years.

Ethan Dornhelm, Vice President of FICO, had this to say about improving your credit score after college:

“If (students) can find a way to pay that back in an on-time fashion consistently over a period of months and years, they will be in a position when they reach those life cycle events like wanting to buy a house, a car, or a home. Their FICO score will be in good shape as long as they’re managing their revolving debts and keeping them relatively low, not spending more than what they have, and paying their bills as agreed.”

Written by adminJuly 10, 2018

Credit & Debt Settlement

The Federal Reserve Bank in New York estimates that the total amount of household debt in the United States has reached $13.21 trillion.

Debt is something we’re all ashamed of. We want to live the perfect American dream, but circumstances haven’t always been present in the last decade to make that happen. So, we’ve had to beg, borrow, and (hopefully not) steal to get by.

From credit card debt, mortgages, and auto loans to student debt, we’ve piled it on and can find ourselves drowning in it before even hit 30.

People who find themselves under mountains of debt struggle even more because they don’t know how to get out from it, especially if there’s a change in income.

What you need is a proven strategy designed to get you out of debt once and for all. Here are four steps you can take:

1) Start by Building Your Savings

One of the most important things Americans need to have is savings stashed away for a rainy day. Yet, according to a survey, the vast majority of us don’t even have access to $400 if we needed it. That’s a scary statistic!

You can’t gain financial freedom without having some money put away in case you need it. Believe, that day will come. That day could be today and you’d be out of luck. Talk to your bank and create a savings account where a certain percentage of paycheck is automatically deposited.

You’ll also want to start an account that’s designed for spending. You’ll probably have to live as lean as possible to get through your debt crisis while saving money for an emergency, but if you have a few extra bucks, toss them into the spending account and they’ll add up. You can use that money for whatever you want.

2) Consolidate/Restructure Loans

There are options out there designed to help you take care of your debts. Most people don’t even take the opportunity to check if they qualify for these options. Restructuring your loan can save you hundreds of dollars per month. Consolidating can combine several loans into one single payment.

One good way to determine if you’re ready for a restructure is by your credit score. If you got a loan when you were younger and your score wasn’t that good, you probably were slapped with high interest. As your score improves, you can be trusted and have your interest lowered.

If you wonder about qualifying for lower interest payments and whether you can consolidate, gives us a call here at Financial Helpers. We’ve helped thousands of people by negotiating better deals with their debtors and lowering their rates, saving them thousands. Call us at the number below today to see how we can help.

Call Now 1-844-332-2079

3) Attack Your Loans

If you have multiple loans and can’t consolidate them, then there’s a method available to help you decide which loan to tackle first. Garrett Gunderson, chief wealth architect at Wealth Factory, says the best way to do this is by using the “Cash Flow Index”.

Take the balance of a loan and divide it by the minimum monthly payment. The answer should determine which loan is eating most of your cash flow and should be paid off first. If it’s below 50, then that’s a high cash flow loan. If it’s over 100, then you have a more efficient loan.

The idea is to show you’re improving your debt to income ratio. Paying off the lowest cashflow loans first will help you do just that.

4) Be Wary of Investing in Assets

You might think having an investment is a great way to secure future wealth, but at the current moment, it’s dangerous to do, especially if you have high debt. The debt is seriously risking your family’s livelihood and needs to be dealt with. If you can, the best course of action is to cash out and put the money towards your debt instead.

“Money is so accessible and available. People have created a massive amount of debt because we’ve become a society that’s not about the cost of the purchase, but the payment behind the purchase. People look at what they might be able to afford based on the payment not considering any mishaps, emergencies or other issues that may happen along the way,” said Gunderson.

Written by adminJuly 9, 2018

Student Loan Consolidation

Student debt is a major crisis in this country.

As we’ve previously covered, student debt has risen to a new record of $1.5 trillion. As that number continues to rise, it becomes increasingly difficult to figure out how to pay it back!

This crisis has been around, but it accelerated towards the end of the Great Recession. A lot of students were graduating college, only to find the job landscape barren. There were plenty of people with bachelor’s degrees working at fast food and living back home with their parents.

It’s been estimated by the Brookings Institute that nearly 40% of all student loans borrowers will most likely default on their loans. That’s a scary number!

The problem with default on your loans is it can wreck your life at a time when you’re trying to learn how to stand on your two feet. It sets you back significantly in ways you may not realize at the time.

Jeremy Wine, the supervisor of student loan counseling at Take Charge America, says, “People from all walks of life are defaulting on their student loans, affecting them for years to come. Paying student debt must take top priority.”

Here’s a list of 5 things that can happen if you default on your student loans.

1) They can demand payment in full.

Once you graduate, you’ll have options for paying back your loan. It’s typically set to be a monthly payment, but what happens if you miss one? Your account will be considered delinquent. Interest is typically added. It takes about nine months of non-payment to be considered in default.

At that time, your creditor can then decide they want the payment in full. No payments will do…you had your chance! It will be their discretion on if they’re willing to work with you further. Your loan will remain in default until the whole thing is paid off.

The best way to avoid this is to stay in constant communication with your creditor. Let them know if you need to skip a payment, but it’s best to make the loan your biggest priority, as it will hurt you down the line if you don’t.

If you feel lost and need to know what your options are, call Financial Helpers today. Our team of student loan experts are standing by to help you through the process, show you what you can do, and even help you apply for existing government programs before they get closed for good. You can reach us at:

Call Now 1-844-332-2079

2) Major collection costs added.

If there’s one thing banks are good at, it’s collecting extra fees. If your loan defaults, they’re going to go out of their way to find you and it won’t be pretty. Fees ranging as high as 20-40% can be added to your loan. Making the loan bigger is the last thing you need!

3) Wreck your credit score.

One of the worst things that will happen to you if you go into default is the impact on your credit score. As soon as you are 9 months delinquent, your credit score will reflect that you’re in default, and the score will drop significantly. Payment history is a huge factor in determining your score, so it will remain until the loan is paid off.

4) They’ll come after your paycheck/refund.

A lot of people think they can just graduate college and not pay their loans. It’ll disappear on their credit after 7 years anyway! But what they don’t realize is, the bank is going to come for your money and they’re tied to the government.

If you don’t make regular payments and go into default, say goodbye to your tax refunds. The government will take most of it. If you’re married and you file jointly, they’ll take your spouse’s refund too. They’ll even garnish your paycheck.

The good news is, this is mostly their way to get your attention. The wage garnishment will continue until you call them and set up a real repayment plan.

5) Default will prevent you from being trusted.

Your credit isn’t the only thing that will be harmed by not paying your student loans. Your credit history is pulled for a lot of things you want to do in life. Need to get a new car? Rent an apartment? Get that big job? You might get a big, fat NO if they see you’re in default.

Other professional employers looking to hire you, like doctors, teachers, lawyers, and other service workers can have their license taken away if they’re in default, so trying to find a job in any of those sectors would be extremely tough.

“It’s best to deal with it immediately. I know it’s really challenging because student loan debt is so high and it’s unmanageable for some borrowers, especially when they are placed in a standard repayment plan. But ignoring it and not doing anything about it is one of the worst things to do,” said Wine

Written by adminJuly 6, 2018

Student Loan Consolidation

On this site we’ve covered student debt and how much it can negatively impact your life.

Americans owe $1.48 trillion in student debt and it’s crippling a lot of people the moment they step out of college and university halls.

Yet, once students graduate, a lot of them continue to make bad financial decisions that leave them struggling in life outside of college.

Here’s the deal: there’s no reason why you should spiral out of control or feel shame that you have this debt. You have to be proactive and decide you’re going to get it taken care of quickly.

If that means moving back home as part of the process, then don’t be afraid to do it. Not everyone will settle into the career of their dreams immediately after graduation. In a lot of cases, if you have outstanding debt that defaults, you legally won’t be able to work in your chosen field, as the state will pull your license.

The overall problem with debt is even when you pay it off regularly, most of the payments you make go straight to interest. And you better believe the bank gave you an interest-heavy loan coming out of high school, with no income and a lack of work experience.

If you’re one of millions of graduates suffering with student debt you’re not sure how you will ever get paid off, here are 7 strategies that will help you:

1) Set an Aggressive Payoff Date

If you just stick to paying the minimum amount, you can spend the next 8-10 years paying off your debt, the majority of your payments going towards interest. That’s thousands of extra dollars you don’t need to be paying, and you won’t if you pay more than just the minimum each month.

Rather than sticking to the minimum, set a more aggressive payoff debt. It’s very possible to pay off your debt in 3-5 years instead of 8-10. Having a sooner date will keep you motivated!

2) Look into Refinancing

Your current rate doesn’t have to be the same rate you pay throughout the life of your loan. If you’re doing well after you graduate, you have a job, making decent money, and your credit score has improved, then you can refinance your loan and get a better rate. You can ultimately save thousands of dollars by refinancing.

3) Do Your Research

As discussed in the first strategy, a lot of your payment goes towards interest. Whatever you pay after that goes straight to the principal amount. It’s always a good idea to have a working understanding of how your loan operates, how much of your payment goes towards interest, and so on.

If you have more than one loan, you can decide to pay the smaller one off sooner (which can motivate you big time). What you decide is up to you, but you really can’t get into the game without knowing your numbers and having a good idea how it works.

4) Don’t Go the Forbearance Route!

It’s always tempting to want to push off making payments, but it’s not practical! You might be thinking you’re buying yourself some time, but the interest will still add up! You can add thousands of dollars’ worth of interest this way, only making the process take years longer. So, even when money is tight, pay your bill.

One of the first steps in achieving this freedom is asking for help. We are the experts in taking care of student debt problems, including refinance and debt consolidation. If you have any questions about your options, give us a call at the number below!

Call Now 844-851-8148

5) Look for Ways to Cut Your Spending

This part will suck, but remember, it’s only temporary! If you want to get rid of your loans sooner, cut back on spending. Can you forgo the vacation for the next couple of years and apply that money towards the loan instead? Maybe consider a cheaper car, cutting cable, and waiting to buy that house. Your #1 goal should be getting out from under this massive burden.

There are lots of things you can do to help make the process go faster:

-Get a roommate to help share the bills.

-Get a second job or even a side hustle.

-Give up the luxuries. If you don’t need that gym membership or the extra subscriptions, cut them!

-Move back home. If your parents are willing to help you out, take the time to settle in your new career while paying less bills, allowing you to pay off your debt sooner.

6) Keep Track of Your Payments

A great way to stay motivated is keeping track of your payments. With each payment you make, you can see your overall total going down, which is such a good feeling. You can use a spreadsheet or just record the numbers in a notebook. Either way, keeping track is effective!

7) Don’t Give Up!

I know it’s tough looking at that big number and staying motivated. It might make you want to push off paying it, or avoid is as much as possible. This is the worst thing you can do, as mentioned previously, the interest will still rack up. The only way to get rid of it is to pay it off. Declaring bankruptcy won’t touch your student loan.

It’s a lot of money, but you can do it! And if you’re proactive, you can do it in a few years. Even if money is tight, keep paying. Before you know it, you’ll have achieved financial freedom and can move on with your life.

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