Debt Consolidation Advice for a Recent College Graduate

As a new college graduate, there is a good chance that you could use some good debt consolidation advice. Accumulating debt is a natural part of the college process in these times. In most cases, you accumulate student loans, credit card debt and a few other types of debt. Getting control of the debt is one of the best things you can do for your financial future. If you do not keep a vigilant eye on your debt, it can spiral out of control and ruin your financial life at a very young age. Here are a few things to consider about debt consolidation after college:

Assess Your Situation

The first thing that you need to do is to assess your situation. Step back and take a look at your situation objectively. Act as if you were someone else looking at your debt situation. Does it look that bad? If it's not really that bad, you might not need to do anything. The last thing you want to do is rush into a debt consolidation solution if you don't need one. There are a lot of measures you can take, but you don't want to use these measures prematurely. You never know when you'll need to play those cards later down the road.

However, if you determine that your situation is bad and you need help, then it is time to take action.

Student Loan Consolidation

One of the easiest things to take care of is your student loan balances. If you went to college for a while, you probably have a few different student loans. Paying them separately, along with all of your other bills can get confusing. If you end up forgetting to pay one or two along the way, it can hurt your credit. Consolidating your student loans is a great idea that can help you in several ways. There are many different companies and programs out there for you to consolidate your student loans. These programs may allow you to shave off a few percentage points in interest compared to your old loans. This will save you money each and every month along the way. It will also add convenience to your life as you can have one payment deducted from your account each month instead of several.

Focus on Credit Cards

Credit cards are becoming a huge problem for college-age kids. You might have had to use credit cards to make your way through college. With books, rent, food, and other expenses; the bills can add up. This means that you will have to take care of the credit cards the first chance that you get. If you can't afford to make the payments on multiple credit cards, it may be time to take action. You could take out a consolidation loan that will not negatively affect your credit. If you do not qualify you might want to talk to a credit counseling company. Taking a minor hit on your credit early is not as bad as having to file bankruptcy later, once your credit cards are out of control.

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