A Big Cut on Paychecks
Student loan debt can take a toll on your monthly income long after you’ve graduated. For federal loans, the Education Department can deduct as much as 15% of your monthly wages. Naturally, this paycheck cut can limit your ability to comfortably finance your daily expenses such as food, utility bills, groceries, etc.An Obstacle to Accruing Savings
Even if your income were enough to satisfy your daily expenses and a few luxuries despite student loan payments, you may still have to sacrifice a portion that would have been part of your savings. On the average, student loan debtors pay about $242 every month—money that could have been used as down payment for a car, a house, your child’s tuition fee, stocks, and other major investments or purchases.A Factor in Getting Low Credit Scores
Credit scores are determined by a lot of factors, including your timeliness in paying bills and current debts. This number is what lenders (e.g. a financial institution for mortgages, an auto loan company, a credit card provider) use to assess your creditworthiness. If you still have a big student loan debt that you cannot pay on time, you may have a low credit score and find it hard to get a loan.A Barrier to Homeownership
You typically need to apply for a mortgage to finance a home purchase. As mentioned, a low credit score makes qualifying for a mortgage hard, while a low income makes it downright difficult to achieve your savings goals.Mulling over a useful JKB Financial, Inc. review, one can see that the best way to deal with student loans is through prompt debt settlement. Companies like JKB Financial, Inc. (doing business as American Debt Solutions) can connect you with an independent processor for a comprehensive debt settlement plan. Together with any other unsecured debt you may have, your student loans can be paid off conveniently in a program that suits your income, thereby hastening your financial independence.
