Responsible management of your student loan debt can be very rewarding to you. But this can be a very big challenge for most people. If the loan terms are not as good as you would like them to be. Then you need to refinance your loans in some other way. You can balance transfer to a 0% intro APR credit card, or you can find a consolidation loan for student loans. Loans that are made for education finance tend to have cheaper minimum payments and longer loan terms then other typical financing methods.
Interest rates on student loans tend to be lower too. But not as low as the intro rates on some credit cards. Sometimes you make out much better if you just bounce money on balance transfer credit cards. When the intro rate runs out get a new card. You need to manage your money responsibly to be able to do this. But these loans come with a catch. No mater what you do, you can’t get out of paying education loans back.
The creditor is allowed by law to garnish your wages to collect any federal student loan obligation you are in default for. This is because student loans are federally backed up. The government is guaranteeing the lender that they will get their money. If your education loans are just plain driving you into the poor house.
Then maybe there are other options you might want to consider. Transferring these debts to credit cards is not a bad idea because credit card companies can’t garnish you wages like student loan companies can. You are more protected when you keep all debts you owe on major credit cards. This practice will protect you from having your wages touched in the event of any kind of financial hardship that makes it unable for you to pay your bills. But for people that have good credit this is also a great thing to do because lenders will see when you apply for your cards that you pay your bills on time. So in return you will be able to qualify for any 0% balance transfer credit card you want.
You can find a bunch of these 0% balance transfer credit card offers at our website for personal finance tools. They have links to banks that lend people up to $10,000.00 with bad credit personal loans. You don’t even need perfect credit to get approved for these loans. They have multiple lenders they work with so I’m sure they can find you something to help you get someone to lend you money. Consolidating your loans may take more then one new loan to accomplish. If you get approved for enough to pay for just 25% of what you have at a lower rate then you pay now. You will save money on your finance charges. Just make sure that you can afford the change in payment amounts from you restructuring your debts. Yes you might save on the overall finance charges but payments on some loans don’t decrease just because you pay more.
On a line of credit your payment will decrease the more you pay. But this is not the same for loans with fixed payment amounts. Doing this isn’t as scary as it seems. Refinancing your debts should be something you should learn to do. Look at offers you get in the mail before you throw them away. You can learn a lot about the options you have for restructuring your debts just from your junk mail. Check out My Money Mechanic to learn debt management tips for fixing your student loans.