According to a study done by the Institute for Women's Financial Success, nearly 1 in 4 women have student loan debt. This number is increasing every year, and it's time to take action.
Why should you worry about having student loan debt?
Student loan debt can be a huge financial burden for people who are trying to get ahead in life. Here are some reasons why you might want to worry about having student loan debt:
- It can affect your credit score. Having student loan debt can negatively affect your credit score, making it harder to get a good mortgage or competitive credit card deal in the future.
- It can affect your financial stability. Having student loan debt can reduce your discretionary income, making it harder to save for a rainy day, build an emergency fund, or buy a house.
- It can affect your future finances. If you have student loan debt, it's more likely that you'll have to take out additional loans in the future to pay off your current debt. This can make it harder to ever get out of debt and build a solid financial foundation.
- It forces you to stick with the safe instead of exciting. If you want to try a new career, start your own business, or jump into an exciting startup company early, you need a level of financial freedom to take risks. If you're stuck with student loan debt, you need to focus on income stability first, which can mean staying in a dull or frustrating job.
The best options for paying off student loan debt quickly
1. Pay off high-interest loans first
If you have high-interest loans, it may be best to pay them off first. This will reduce the amount of interest that you are paying and could save you a lot of money in the long run.
2. Consider a consolidation loan
Student loan debt consolidation is a financial strategy that combines multiple student loans into one single loan, making repayment more manageable. Additionally, consolidation loans often have lower interest rates than individual student loans, making the overall cost of borrowing more affordable. If you are considering a consolidation loan, be sure to speak with an experienced lender to find the best option for you and your financial situation.
3. Consider income-driven repayment plans
Income-driven repayment plans allow you to pay back your loans based on your income and adjusted for inflation. This can help you avoid high-interest rates and make payments more manageable over time.
4. Consider student loan refinancing
Refinancing can allow you to pay off your debt more quickly and save money on interest rates. If you're considering refinancing, be sure to talk to a qualified financial advisor to weigh your options and find the most competitive rate possible.
The bottom line
It's time to get serious about your student loan debt. Many options are available, and you can get out of debt fast with the right approach.
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Original Source: Credello: Almost 1 in 4 Women Have Student Loan Debt. Here Are Their Best Options
