Can debt consolidation help you pay off your student loans?
Debt consolidation is a good way to take care of credit card debt, but few people realize that it can be used to help people who are struggling with student loan debt. Student loans are some of the scariest debt for a new graduate to carry. It often has a high interest rate, and there is no way to discharge the loans or change the payment with the original lender. That means that if you are having problems with paying your student loans, there are very few options that you have to lower your payments.
One of the best methods that is available is debt consolidation. This method pays off all of your existing student loans, then gives you a loan with a monthly payment that was lower than what you were paying before. Often, your new loan has a lower interest rate and a longer payment term. It’s very common for former students to have a loan payment that is less than half of what they used to pay.
Debt consolidation can help you in several ways. To start, the process pays off all of your existing student loans. If you’re constantly juggling multiple bills from different lenders, then you need to get in control of where your money is going. Combining everything together into a dingle loan is a good way to make sure that you don’t miss a payment.
That payment can be significantly less than what you’re currently paying for your student loans. If you’ve recently graduated and are having trouble getting your career started, or if you just need a lower payment so that you can set up a household or prepare for some other major life event, then you just need to pay less on your student loans. Of course, there’s virtually no way to get your current lender to lower your payment, so you need to take steps to get those loans replaced.
As an added bonus, it’s possible to include credit card debt and other loans in your debt consolidation loan. That means that you can save even more money by combining all of your debts together and paying less every month. Later on, it’s possible to pay the loan off early if you have extra money.