Although college was well worth it, it’s no secret that the money spent to achieve that further knowledge has greatly accumulated over the years. That can be a serious issue for many graduates. The student loans, the book costs, financial aid, and plenty more expenses throughout four or more years of schooling… those can really add up. There are a few things recent college grads can do to begin to lower their debt.
Don’t Make the Minimum Payment
This especially goes for credit card debt that might have also accumulated during your college years. It might seem like the more responsible thing to do now — because you don’t have as high of an income — but only paying the minimum can jack up interest rates and cause you to spend much more in the long run. Only 37.4% of credit card holders pay their full balance each month and, sadly, 16% only pay the minimum monthly balance.
Don’t Get in More Debt
This is extremely important because you do not want to fall deeper into the debt world because it is extremely difficult to climb out. About 20% of young Americans — ages 18 to 24 years old — qualify as being in “debt hardship,” so, unfortunately, your age group is susceptible to thing kind of thing. Make sure to make all of your payments on time so your debt doesn’t continue to build. Just over a quarter — 26% of Americans — admit to not paying their bills on time, which leads to more and more debt.
Get Cash for Your Settlement
By selling structured settlements — if available to you — you will be able to receive a large amount of money, rather than receiving that money in smaller amounts annually. If you get cash for your settlement payments you will be able to pay off all — or at least the majority — of your debt. An annuity settlement works the same as well. The average payout of a structured settlement is around $324,000. It’s absolutely imperative to be responsible with that money and handle it only for debt payoff and other necessities.
Whether you’re making more than the minimum monthly payment, staying out of further debt, or getting cash for your settlement, being responsible with your finances is key. Contact us today if you have any questions!