1. Attack highest interest debt first: If you
have other debt besides student debt, pay that down first - assuming it's at a higher interest rate. Especially if you
have that dreaded Credit Card debt where you’re owing 20% interest.
2. Is your
debt with OSAP?: See if you qualify for the “Cap on Debt” program. The program
ensures you only owe back $7,300 per standard 2 term academic year.
3. Consolidate
if you need to: If you are feeling overwhelmed with debt beyond just your student debt, speak with a financial advisor at your local branch. They may be
able to consolidate your debt together and give you a simple payment structure that will work
for your budget.
4. Don’t let
it get out of control: Coming up with a plan to deal with debt today is better
than letting it get out of your control tomorrow. Deal with it today.
5. Budget:
Once you’ve discovered how much you can pay down per month on your debt – stick
to it. Don’t spend money you don’t have. To learn how to budget as a student,
visit A Student’s Guide to Spending.
I know
none of the options are that appealing (besides the Cap on Debt program), but
you can do it. And it’s better to attack the debt now than deal with an even
worse situation later.
Great advice! So many students are leaving school with huge student loans and it can be overwhelming at first.
ReplyDeleteI really hope I don't have this debt hanging over me for the rest of my life. I'm not great with the whole budgeting thing, outside of winning the lottery I think this could be trouble for me.
ReplyDeleteI will have to use some of these tips when I start paying back my student debts!
ReplyDeleteI was debt-free after I graduated 4 years in university but this past year at college definitely put be a step back (and way back I might add). Thank you for your tips - I know little to nothing about investing and this blog has helped me out a lot! Please be my banker.
ReplyDeleteThese are great advice that soon-to-graduate students will benefit from. I was debt-free 3 years after graduation and I know that I could've done better. If only I read self help books or if I knew how to manage my debts, then I could've paid my student loan a lot faster.Jaden Allred
ReplyDeleteIt’s always good to be aware of how you’re spending your money, especially if you are up to your armpits in student loan debts. Getting credit cards is a no-no. Well, maybe for emergency purposes only. But having that looming in the background can be a big temptation to buy stuff. I’d rather just put aside money while budgeting than charge it to my card.
ReplyDeletePaddon+Yorke
This is just the information I am finding everywhere.Me and my friend were arguing about an issue similar to this! Now I know that I was right.
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