| In my last post I talked about how college was one | | | | $20,000 at 7% for 10 years equals $7, 866 in |
| of the most rewarding experiences in my life but it | | | | interest. |
| also left me with a fair amount of debt. I realized | | | | $20,000 at 13% for 5 years equals $7, 304 in |
| that it doesn't take much to accumulate debt, | | | | interest. |
| especially when your income is next to nothing. It | | | | 4. Don't miss any payments. Ever. This is probably |
| also doesn't take long to become despondent when | | | | one of the most important pieces of advice I can |
| you see your personal finances dip further and | | | | give. Not only will missing a payment damage your |
| further into the red. There is hope! I have created a | | | | credit rating but the penalties will add up quickly. |
| list of four tips can be useful in helping you start to | | | | Chances are your college debt won't be the only loan |
| erase your college debt! | | | | you have in your life and you're going to need a |
| 1. The first thing you need to do is discover how | | | | quality credit rating for other major purchases such |
| many loans you have. If you live in the United States | | | | as house or a car or for that much deserved |
| log onto the Website for the National Student Loan | | | | vacation. That's why it's important to negotiate an |
| Data System. There's a lot of important information | | | | amount that is manageable so you can make every |
| at this site that will show how much you owe and | | | | single payment when it is due and not get in over |
| from whom. Before you can review the details at | | | | your head when other expense's come your way. |
| the NSLDS you will need to obtain a four-digit PIN | | | | These four tips may seem simple enough but |
| from the Department of Education. | | | | sometimes it's easy to make mistakes, especially |
| 2. Consolidate your College Debt. This is very | | | | when you are busy at your brand new job. Take a |
| important. It will help eliminate multiple payments each | | | | day as soon as you can to start with these tips. |
| month and lower the interest rate. It's easy lose | | | | Most financial institutions are now open six days a |
| track of your budget if you are paying off four or | | | | week so it is important that you take the time to |
| five different loans. | | | | fast track your financial situation. I challenge you to |
| 3. Renegotiate the rate and term your of loan: It's a | | | | start with these steps this week. You would be |
| fairly simple formula that the longer you are paying | | | | surprised how much more money you will have by |
| off your debt, the more interest you will pay in the | | | | the end of next month if you take care of it now. |
| long run. It may not be feasible for you to pay it all | | | | Good luck eliminating your college debt and be sure |
| off in one or two years but the more quickly you do | | | | to save a few dollars for that beautiful new glass |
| so, the less interest you will pay on your college debt | | | | frame for your diploma. |
| in the long run - even if it is at a higher interest rate. | | | | Bye for now! |