Student loans are one of the fastest-growing types of debt in the United States. In April 2013, the total value of student loan debt passed the total value of credit card debt in the country, making it the most common type of debt by volume.
That is not to say that it isn’t important. Getting a college education is the most valuable thing you can do for your financial health. The problem comes when an entry-level position doesn’t pay enough to service your debt while enabling you to afford necessary payments like housing, bills, food and savings. While your lifetime earnings will be much larger, you may need a little help with your student loans right now. A process called debt consolidation can help you get the handle on your loans that you’ve been looking for.
How Does It Work?
Student loan debt consolidation from a company like Credit Guard is the process of allowing a debt consolidation service to take over responsibility for paying off your loans on a regular, monthly basis. In return, you pay the service a single low monthly fee representing reduced interest rates, waived penalties and lower minimum payments. The consolidation provider negotiates fiercely with banks, using its marketplace clout to get you a better deal on your loan terms.
The savings pass directly on to you and your budget. People report that debt consolidation helped them save thousands of dollars in interest payments over the term of their loan. That’s money that can go directly toward your rent, groceries, the gas bill or even a little treat for yourself to celebrate all the hard work you do.
Credit Counseling and Consolidation
Of course, debt consolidation isn’t just about making it easier for you to pay off your debts. It is also about ensuring your financial stability and strength for the rest of your life. During the student loan debt consolidation process, you will sit down with a credit counselor who will look at your unique situation and help you put a budget together that will get you through it. You will benefit from an expert’s eyes as you find places where you can trim your budget, save some extra dollars and do what you need to do. This top-notch financial education will serve you well for your entire life.