The above statistics are just estimation and might differ from the actual figures but the debts will not be lesser than this amount. Completing the college education is not only an achievement but also a time to ponder over a few things. Instead of getting on with a new apartment and a vehicle which will only add to the existing debts, the college students need to be careful. There are a whole lot of issues that they require to handle before the burden of debts get out of hand. Although the students have the option of debt consolidation programs to handle their monetary obligations, it is better to think of ways to kill the debts. Debt is a very reflective issue and a cause of a lot of anxieties in a persons life. The college students should be determined to resolve their debts in the beginning and not carry it longer. If kept for a longer time, debts will inevitably destroy their credit score. It can also lead to an increase in the rates of interest e.g. for the mortgage. It is better to start paying off the debts before starting with a family as having one would simply mean that you will be paying more towards your household expenses. However, once the students have got on with the importance of resolving the college debts, there are some ways to kill those obligations:
A majority of students fail to realize that paying oneself should be carried out along with paying off the debts. They will simply look for ways to eliminate their debts and ignore their savings and investments. According to financial experts, with the uncertainties prevailing in todays financial world, the students have also to contribute towards their 401K through their first job.
The second thing to tackle is the credit card debts. Credit card debts are usually more dangerous than the educational loans. Therefore, a good idea is to pay off the credit card debts at first which are high in interest before tackling the other debts.
Even while paying off the college debts; it is best to get rid of the higher interest ones at first. A majority of the student loans are inclusive of Government approved loans as well as private student loans. The private loans are usually of higher interest rates. While the private ones can be tackled in the beginning, the students can make minimum payments towards the government loans.
It will be impossible for the college grads to have substantial savings without having proper financial goals.
It is necessary to follow a budget as soon as the students complete their graduation. It will make them to have a better way out of their debts after paying for the food and utilities.
Tackling college debts can be a very stressful issue indeed and the starting salaries are simply falling short to repay the same. However, the students have to be smart enough with their repayment plans and techniques.