Have you just graduated from school and entered the not-so-great real world? Do you currently feel like your newly earned and hard worked for money is diving straight into the paycheck of your student loan repayment plan? Are your pockets always empty because of this?
If so, then you should seriously consider consolidating your student loans. If you are having second thoughts, trust me: this is the ideal option for you. And I can tell you why. If you consolidate now, you have the chance to save yourself hundreds or thousands of bucks in interest, which would have just accumulated as years had gone by. It is important to do this right now, in particular, since the interest rates are currently at a minimum, so you should take advantage of this. Also, if you consolidate your student loan, it will be much more convenient for you to pay all your debts. But, most importantly, your total interest rates will lower significantly, saving you a whole lot of money over time. It is important to try and get fixed rates, however, or the overall interest rate still has a chance of rising. Be careful of companies that might try to entice you with offers of very low initial interest rates; these tend to rise very quickly, leaving you with a higher interest rate than normal.
By consolidating your leans, you will just have to ay one single big payment in place of a couple of smaller ones. In general, your monthly payment will be less compared to all of the loans bunched together, which will give you a bit more pocket money. As time goes by, this will save you a lot and even give you the chance to have more bucks available for personal use, such as furniture or stereo. You could even put your cash into savings, if you wish, instead of buying stuff, and this could turn out really well in the long term. Just paying once will make it easier for you to keep track of the loan and you can avoid late payments, as well as have a better view of your standings concerning your debt.
With consolidation, you give yourself the chance to get lower rates of interest because certain opportunities may arise where you can forbear or defer, allowing the rate of interest to decrease even more and putting a bigger chunk of the monthly payment into the actual main loan amount. This means you can pay it off faster. If there is a chance of you finding a consolidation which will not give you any pre-payment penalty; that is great, as this will let you pay it off faster. If you get higher paychecks where you can pay beforehand without getting punishment; that is even better, this will make you much closer to freedom of debt than ever. Yet another advantage in student loan consolidation would be tax breaks. You will be given deductions whether you can itemize or not and this will lower the taxable income amount by a couple of thousand dollars.
Yet another benefit to student loan consolidation is that you can keep your total credit rating or get it even higher since you will have a lower amount of creditors on your actual credit report. If you have more creditors waiting to get money off of you, your credit score will appear to look worse. Having just one singular loan of consolidation gives you one singular creditor, immediately making the credit rating higher. In the end, all of your payments will be paid off and the credit rating should get even better.
Now that you are aware of every single advantage and benefit that comes with student loan consolidation, you should come to the conclusion that it makes a lot of sense. You get more cash; it’s easier and more convenient when it comes to payment schedules and payments; it gives you higher credit rating and lower rates of interest; plus, you get out of the debt much faster. So consolidation is definitely something you should consider. Look into it now!