You've made it! You've finished all of your schooling, sent out your resumes and have landed a great job. Now it's time to take a look at your student debt and figure out how it fits into the budget. If you're like most young workers that are just fresh out of school you may not know a lot about setting up a budget or what's involved in paying off your debt. Here is some of the most important information you'll need to know to help you get your debt paid off quickly while keeping your credit files clean.
1. Don't take on extra debt
You may be sitting on quite a debt load right now and the last thing you’ll want to do is add to it. You've got a new job and this is the time when credit card companies may start to give you offers. Take these offers and trash them for now. Credit card debt can be extremely costly especially considering the high interest rates. What you need to do is concentrate on paying off your student debt before considering taking on any more credit.
2. Pay it off quickly
The sooner you can get rid of this debt the better off you're going to be financially. If you do run into any extra money during the year, perhaps from a bonus at work or an income tax return, put some of the money into paying off your student debt. Every time you take a chunk off of this debt you’ll have some weight taken off your shoulders. When you start making extra payments it will quickly become a habit and you'll be surprised to see how quickly even small payments can add up.
3. Ask for help if you need it
If at any time you have a problem making your payments you need to ask for help right away. If you completely avoid making a payment for one reason or another it will affect your credit history. This can make it harder for you to buy a home in the future or even borrow money to purchase a new car.
Find out more about the Government of Canada's programs that will review your financial situation if you're having trouble making your monthly payments. The review will look at a number of different factors including your family size and income.
There are cases where a person won't have to make any type of loan payments until their income goes up. You can also find out what programs the provincial government of Alberta has to offer in the form of interest relief or assistance plans for repayments. This is one case where the government is willing to work with you to help you out and assistance is available if you ask for it.