How to get out of Debt before you’re 30
If you’re trying to get established in a career, you know how expensive it can be to get your life started. Student loans, credit card debt, and an auto loan are just some of the loans that you’re trying to get paid off, and you still have to worry about saving for a home, kids, and your retirement. Fortunately, there is a way to get everything paid off before you turn 30 and still have money left over to build up your savings.
Debt consolidation loans have been sold to older, established consumers for years, but now many younger adults are starting to realize the potential of these loans for their own finances. With record numbers of Millennials struggling with their debt but not earning enough to get it paid off, these loans are becoming a valuable financial tool.
Debt consolidation loans pay off all of your existing debt and replace it with a single loan that has a lower interest rate and in some cases a longer payment term. This gives you a minimum monthly payment that is less than half of what you’re currently paying on your debt. Since the interest rate is lower, you’ll be paying less every month towards interest and fees and more towards the principal.
With the money you save every month, you can make several different choices. Some people choose to contribute more towards their employer retirement funds, giving them a foundation for a better life in the future. Other people use their savings to build up a private savings account that can be used to purchase a home, go back to school, or just pay for emergency expenses. Finally, some people choose to use the money to pay off their debt consolidation loan even faster.
<p data-sp-element=”content”>If you’re someone who is struggling with his or her debt, the lower payment that a debt consolidation loan provides can be the difference between defaulting on your loans and actually making your payments. These loans can save you from bankruptcy, repossession, and wage garnishment. That, in turn, gives you the ability to make your finances stable, and actually start to grow your savings account rather than spending everything you make trying to address the huge pile of bills that arrives every month. By the time you’re 30, you’ll be out of debt and ready to move on to the next phase of your life.