subject: Student Loan Consolidation Saved Me From Bankruptcy [print this page] Student Loan Consolidation Saved Me From Bankruptcy
My most recent employment outlook offered a very small wage, not near enough produce my combined loan payments due by the end of each month! If it wasn't for the opportunity to consolidate my student loans, my only alternative could have been to default on the loans, destroying my credit rating and my life! When I consolidated my loans, the actual result simplified my loan repayments and minimized my monthly payment.
Consolidating student loans is easy, after you do your homework. First, be certain of your budget allowance. Knowing your financial budget and what you can afford to pay for when it comes to loan payments helps to avoid late fees and penalties which come if you are not able to meet the monthly loan payments. This consists of knowing what interest rate you really can afford. Use websites supplying interest rate calculators to find out the weighted average of your rate computed over your merged loans. With this number I was able to know what rate to purse in a consolidated loan. Timing is also important, especially when it comes to interest rates. I saved thousands by consolidating my loans when interest rates were at one of the lowest points of the year.
In addition, I asked plenty of important questions, primarily of lenders I had been considering. I wanted to know what penalties and fees there would be if I consolidated loans and if there would be penalties for dropping a current lender. What were the terms of the loan, the lifespan of the loan, and was there the option associated with repaying my loan early, without having to be penalized? Furthermore I inquired about federal student loan programs that fit my needs and employment situation. Each one of these provided me with a variety of choices for student loan consolidation.
You will have excellent conditions for consolidating loans; finance interest rates are very low and Congress has made concessions to help students with the student loan debt. Know what student loan consolidation program is the best for you, federal loan consolidation, or private. What's more, take note of your timing when considering consolidating loans, as current student regulation allows that the student is only able to consolidate loans once.
Considering my options and asking smart questions meant I would come up with intelligent decisions on student loan consolidation. I could get my finances under control andI would be avoiding another set of problems that would land me back in a bankruptcy situation.
