As a new college grad, it can be difficult to navigate the choppy waters of your burgeoning adult hood. Not only do you have to think about finding a place to live - you also have to think about how and when you are going to pay off your debts. Of course, your loan has gotten you this far, so you can thank your lucky stars for that, but you have one more hurdle to get over. Once you take care of your debt after college, you can think about getting back to your life plan. Here are six debt management tips for new college grads.
- Know Your Grace Period
Knowing your grace period is a good place to start, because you may have some time before you have to make your first payment. In some cases, you may have a few years before things kick in. Ideally, though, you want to start paying off your loan right away. If you can't, that's okay too, but you should be thinking about seeking a source of income to start paying back your debts.
- See if You Qualify for Deferments
In some cases, you may be able to qualify for a deferment. Most loans come with a certain interest rate that may change according to where you are in life. If you are accepted for a deferment, you can at least rest easy at night knowing that you aren't sinking further and further into debt. For instance, if you know that you will be getting a job in year, you can defer until then.
- Look into Consolidation
Consolidation is a nice option, especially if you went through multiple degree programs. For instance, if you went to USC Online and then Amherst College, you may have a few different debt packages open. A consolidator will basically purchase those loans, bundle them up and make them cheaper for you to pay back. Of course, when they are bundled into one package, it will also be easier to pay back the loans.
- Know How Much You Can Pay Each Month
On top of consolidating, repackaging and deferring, you want to know what your minimum monthly payments are going to be. If you don't know how much your payments are, you could be in a situation where your debts become harder to pay back. You may even want to setup automatic payments.
- Seek Out Cheaper Digs
If you are paying a fortune for living expenses, you may want to think about moving. In some cases, you may want to move back home with your parents. This is a great way to save money, pay off your debts and hopefully move on in a few years.
- Negotiate Your Debts to Something More Manageable
On top of everything, you want to find a way to negotiate your debts. You want to talk your lender down to a manageable number. If the lender is a particularly large institution, knocking off a few thousand dollars is usually not a big deal. In the end, though, you want to be tough when negotiating.