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Preventing College Debt From Accumulating


By Devora Witts

the-college-prosOne of the biggest problems of college students and newly graduates is student debt. Since the aid that the government provides to help those in need go through college studies is not enough to cope with all the expenses, students resort to all kind of financial sources in order to raise the money that they need. Student debt accumulates rapidly and eventually, when the main part of the debt becomes due, the repayment installments are too onerous and sometimes absolutely unaffordable. That is why we suggest some measures to reduce if not avoid these results.

It is not possible in most cases not to resort to private institutions when you need financing for coping with college expenses. The government does not provide all the money needed and there are always additional expenses not contemplated in the federal student loan programs. However, it is possible to borrow smartly and to keep to a minimum the amount of money you need to borrow for getting by extra college expenses.

Loans Instead Of Credit Cards

A way to avoid additional debt during college periods is to avoid using credit cards for coping with additional expenses. It is sometimes better to budget what you will need and request a personal loan. That way a higher control over your expenses will assure that debt will not accumulate and you will get used to putting aside the money needed to pay for the loan’s installments every month.

Credit cards and the famous minimum payments can ruin people’s finances due to the lack of discipline. This is a considerable problem especially for college students which are not used to being careful with their spending habits. Minimum payments contribute to debt generation and accumulation due to interests. Personal loans on the other hand, have fixed payments (or with little variations) and fixed amounts. Thus, budgeting with these financial tools is significantly easier than with credit cards.

Shopping For Lenders, Taking Advantage Of Offers

From time to time there are wonderful offers from lending institutions that want to obtain customer fidelity offering 0% APR products or subsidized rates. It is a good idea to subscribe to as many newsletters as possible from different financial institutions so you can receive in your mail or email the current promotions. Remember though to examine the offers closely for any hidden fees or costs that some lenders like to conceal on the fine print.

Shopping for lenders is essential. You have to request quotes from as many lenders as possible before deciding for a specific one. Remember that financial products are just that, products. Thus, you can bargain with lenders as you can do so with a trader, merchant or retailer. It is a good idea to show them what other lenders are offering you and ask them if they can improve their offer. Rest assured that they will happily reduce the rate or exempt you from fees or costs in order to keep you as a client. Do not hesitate to negotiate with lenders; after all, you have nothing to lose.

About the author:
Devora Witts is a certified loan consultant who instructs people regarding Consolidation Bill and Bad Credit Fast Loans. To get aid with your financial
situation you can visit her at http://www.badcreditloanservices.com

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Filed under: California Colleges, Campus Lifestyle, College Debt, College Planning, Refinance, Students, , , , , , , , , , , ,

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