Sponsored by Shop Clearly:
Debt is a byproduct of living in a consumer society. Everywhere you look, advertisements show images of happy, beautiful people who enjoy their new products. Not only that, but these advertisements target people who can’t afford to make the purchases themselves. Children love their $50 toys that break during the first use, and poor people dream of buying products that exceed their budgets. Debt has become so ingrained in our society, that 73% of all Americans die with some form of debt.
The good news is that there are ways to negotiate your debt and consolidate your payments. You just need to know who to talk to. For example, First National Bank is the largest privately held bank in the United States, and has associates who can speak with you about your debt. You should start by speaking with a credit counselor to get to the root of the problem. Your credit card provider will help you with payment concerns, and you should speak with someone about your student loan payments.
A credit counselor is a person who will help a consumer ease the burdens of debt. They will help you find the source of your spending and create a workable budget that allows you to pay off your debt in three to five years. Most of the companies that offer counseling services are nonprofits and have minimal fees which are waived if you have a financial hardship.
These counselors will perform a comprehensive assessment of your financial records and create a payment plan that fits your budget. Instead of making several payments to your creditors throughout the month, you will make a monthly payment to your counselor who will then pay the creditors. This is a good way to avoid missed payments and incurring late fees.
The best place to start reducing your debt is to reduce your monthly interest rate. Some creditors have interest rates that surpass 25%, and it’s incredibly difficult to ever get out of debt. The best way to reduce your interest rate if you have a high credit score is to sign up for a credit card with 0% interest rates for the first 12 months and transfer all of your debts to that credit line. This can save you hundreds of dollars in expensive interest fees.
Student loans are one of the leading forms of debt for younger generations. This is because the need for unskilled labor has dropped dramatically, and young adults are flocking to universities to get degrees. This need for college degrees has left many students with thousands of dollars in debt that they must begin to pay off 12 months after graduation.
To avoid these costly payments when you’re working an entry-level job, you can contact your loan provider and ask to defer payments to a later date when you’re making more money. There are also special circumstances where students can have their loans forgiven or reduced, so contact your provider today to begin saving money!