The majority of college students in the US now graduate with debt — affecting not only the current generation, but also every one of us who hope to see our children and grandchildren begin adult life without crippling loans.
Offering financial assistance is certainly one way of helping your loved ones overcome such issues — but sometimes, sound financial advice can be just as important. (Teach a man to fish, as they say.) Here are a few tips that you should consider sharing’
- Exceed Minimum Payments. Payment plans are designed by lenders with the goal of maximizing accumulated interest. Every month in which you manage to exceed minimum payment requirements, you reduce both your amount due and the percentage of interest you will ultimately pay.
- Refinance and Consolidate. Refinancing can lower the amount of interest you pay, resulting in significant savings. Consolidation usually doesn’t lower interest rates, but it can simplify your payment plan, reducing both stress and the risk of incurring late payment fees.
- Utilize Windfalls Wisely. Whether acquired through inheritance, lawsuits, investments, or even the lottery, many people receive unexpected income (windfalls) at some point in their lives. Unfortunately, few are actually prepared to manage this money with an eye toward the future. Generally speaking, even though it is boring, paying off loans and/or investing windfall profits is smarter than spending your newfound wealth on day to day expenses.
- Consider Jobs that offer Forgiveness as a Perk. Considering the pros and cons of potential job offers? (Many new graduates are!) Look beyond salary. Loan forgiveness programs — along with other traditional benefits such as medical insurance and retirement funds — can be a tremendous asset providing both financial stability and peace of mind.
Building wealth is a lifelong journey. Learn more about growing your savings (and share what you learn with those you love!) by visiting Red Rock Secured online today!
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