If you have student loans, the impact of this debt can be felt in different areas of your life. It can even get trickier to manage your finances if you have debt from multiple sources. This can make your life quite difficult as you try to juggle paying off all the balances.
A lot of people fall behind in their payments and so collection agents are sent after them. This can add to the financial stress that they already have. However, this doesn’t have to be the case. One of the best ways to pay off your debts without the added stress is to consolidate your debt. This way, you will only have to deal with one creditor and one monthly payment.
There are several ways that you can consolidate your debt. The method that you choose will be determined by your financial circumstances and your preferences.
Here are the steps to consolidating your deb
1.Know how much you owe
Go through your financial records and see how much money you owe to different creditors. This will give you a good financial perspective.
2.Evaluate your assets
Check through your assets and see if there is anything that you can sell off that can help you to pay off your debt. If there is anything that you can sell off so as to settle your debt, do so.
3.Borrow from family and friends
If you have someone with the financial capacity to help you out with your debts, approach them. Ask them if they can lend you money so that you can pay off all the monies owed and then you will only have to worry about paying your friend. This will give you relief since you will not have to be worried about skyrocketing interest rates. However, you have to be ready to be financially open with your friend and let them know how much money you get and how you spend it. You have to prove to them that you can pay back the money owed.
Keep in mind that if you fail to pay off this debt, it could lead to a bad relationship with the family member, so you have to make sure that you can afford the repayments.
4.Consolidation loan
You can approach financial institutions that offer the ability to refinance student loans and consolidate. If you are eligible to get financial help from them, they will pay off all your different loans and then you will have to pay them back the amount owed.
There are many institutions that offer this service, so you have to keep looking around until you find one that meets your needs. The institution should also have favorable interest rates and good terms and conditions.
5.Make your repayments
Concentrate on paying off your debt since you now don’t have creditors on your neck. Do anything you have to do to make the extra money required to make the monthly payments.
