So you’ve qualified to have your student loan forgiven or reduced, now what? Up to 20 million borrowers may have all or some of their student loan forgiven. This will open up the opportunity to take advantage of extra income and roll it into other debt payments and help many borrowers not only reduce their overall debt but become debt free.
According to WalletHub, the average credit card interest rate is 20.16 percent for new offers and 15.13 percent for existing accounts. So it would make sense that one would want to pay off high interest rate debt more quickly. Not only does this open up more disposable income but can help improve your credit score.
So what steps can you take to make sure that you use this opportunity to set you up for further financial freedom:
- Pay more than the minimum
- Make multiple payments
- Shorten the length of your loan
- Consolidate multiple debts
- Contact your lenders to work with you
Work with a reputable debt relief company to handle the process for you
As you can see, there are various ways to utilize the extra funds you will have each month to help you reach your financial goals. By committing to paying down debt you have taken the first step. Taking advantage of the any of these options can not only help lift the burden of debt off your shoulders, it can put you on a path of successful money management. Cheers!