Dealing With Stubborn Student Debt? 3 Blogs That Will HelpJul 18, 2017
When you’re young and just starting out, having a lot of student debt and needing help to pay it off can be frustrating.
Student debt can force you to put off big spending decisions. For some, this might be buying a home or starting a family. For others who already own a home, it might be something like a vacation or starting a renovation project.
Taking on more debt might sometimes seem like a decent option. After all, interest rates are low, so why not take advantage?
According to a BDO Canada poll, this is exactly what many young Canadian homeowners are doing as they make renovation plans. Among all age groups, millennial renovators plan to finance the largest portion of their renovation with debt (32 per cent). Compare that to baby boomers, who will use debt to pay for just 18 per cent of their total reno costs.
Adding more debt — on top of existing student debt — can be risky down the road. The more debt you have to repay, the less you’ll have for savings. That leaves you unable to pay for financial emergencies, like damage to your car.
Consider the bigger picture. Make an effort to pay off your student debt first. There are plenty of first-hand accounts and resources to help you with this. We’ve brought together three reads from around the Canadian “blogosphere” to get you motivated.
- Change your priorities
It can be hard to look at your student debt and make it priority number one. There are a lot more interesting things to do with your money than pay down old loans!
This BDO Cranbrook blog from 2014 talks about how to change your priorities and start hacking away at debt. It tells you how to assess your debt load, find out where your money is going, and find opportunities to pay down debt whenever you can.
- Make a plan
You’ve landed your first job out of university or college. Should you take advantage of the government’s six-month non-repayment grace period for your student loan? This blog provides that answer, along with some good tips for How to Pay Off Student Debt After Starting Your First Job.
- Find your motivation
Sometimes all we need to start a new plan is some old-fashioned motivation. If your student debt load seems overwhelming, consider this story from Halifax’s Jordann Brown, author of @myalternateblog. From 2011 to 2012, she paid off $38,000 in student debt over a span of 36 months.
How did she do it? Jordann used tools at her disposal to maximize her debt repayment. You can read her post to find out more.
For you, this might mean using an online debt options calculator. You can take a look at the monthly payments offered by different debt solutions — like debt consolidation or credit counselling — to find the best plan to help pay off student debt.
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