The article touches upon the issue of Student Debt Exceeds Credit Card Debt. Student loan debt in the United States has reached an epic high of about $860 billion dollars, while the amount of US credit card debt is only $693 billion dollars. This is a terrible amount of debt that will almost surely never be repaid by the citizens who have taken out the loans.
Many students, even with the loan help, can not afford the extra two hundred to five hundred dollars a month (plus interest, of course) that it takes to even begin to repay these loans. The amount of student loans even surpasses that of the entire American automobile debt amount, which is currently at around $730 billion dollars.
What are these former students going to do about their debts, you ask? Many will sit back and have their wages garnished, many will allow their debt to be taken from their tax returns each year, and many will begin the arduous, seemingly fruitless process of paying them back a tiny bit at a time. The average student can afford only minimal amounts of payments each month, which can add up to paying for your loans for the next twenty years or more.
There are options for those students who need some help with their horrible financial situation, though. Credit counseling services are making more money these days than ever before. These organizations are there to help people with outstanding debts and obligations that they can not take care of for themselves.
People with student loan debts can also try making a specific budget for each month or working with their bank to have part of their paychecks put into an account that is just for paying off part of their loans each month.
There is hope for people with massive amounts of student loan debt or credit card debt, and it is a good idea to take care of your debts as quickly as possible to keep your credit score in the positive side of the spectrum. The longer you keep yourself wallowing in debt, the worse the outcome will be financially. You can save yourself from student loan debt in several ways.
Don’t let your debt drown you like the millions of other students who are now suffering from getting their wages garnished and tax returns affected. Student loan debt is far higher than the national credit card debt, and you can save yourself from this situation too.