How to Avoid the Student Loan Debt

Many students left the credit card debt when they have graduated. It reached 70%. It is very alarming. How to avoid the student loan debt?
 
Debt is one of the factors that undermine the score of your credit. Many people watch their credit scores fall due to unpaid debt balances. They are always late paying monthly bills. In fact, some are late paying a bill of up to several times.

Of course, this condition is very alarming. If the late in paying the monthly bills only happen once with the age of credit card for10 years, it will not have a major influence. However, what if the late payment of monthly bills until a few times?


Their credit scores continue to decline. Their credit score become fair or bad. It can make them get difficulty  when looking for a job after graduation. The opportunity to get a job will be smaller.


They are also difficult to get a new credit card or a new loan such as to buy a house, car, or other.

Paying Bills on Time and Shopping Under Credit Limit

 
Student Loans are loans installment. You have to pay monthly installments regularly until all debts are paid off. Car loans and mortgages also include this type.


The burden of payment for installment loans is more severe than other types of credit. That is why paying the monthly bills on time is always recommended.


Why? This is the only way to ease your financial burden. This is the way to keep you from the possibility of a large debt bondage.


By paying bills on time, your credit score can be fixed quickly. The monthly bill payment history has a large impact on your credit score. Its influence is 35%.


Compared with other factors, paying the monthly bill is the biggest factor affecting your credit scores.
That is why you need to pay great attention to this problem. Many ways you can do to reduce your outstanding balance.


For example, always accelerate the repayment of the outstanding balance. That is, you do not pay the minimum monthly bill. It would be better if you immediately pay off your debt.


You also need to limit the spending. You did not buy anything more than your credit limit. You must spend  maximum 30% of your credit limit.


Indeed, there are several other factors that cause your credit score go up or down. 

However, you need to pay attention seriously to two things above: always pay the monthly bills on time and not spending more than 30% of your credit limit.

If you can do two things well, you will be free from the student loan debt.