Managing student debt in the USA can be a challenge that leaves many out in the cold. Employment opportunities for high paying and advanceable jobs are low, leaving many graduates with no option but to take a part-time or low-paying job to get by. The issue becomes worse once repayments start to get taken out, especially if your repayment plan is not based on a percentage of your paycheck, but instead taken out as a monthly balance. Far too often, this means taking a second or third job just to stay afloat.
Though it is not a guarantee, this guide is set to help you manage your finances so that you can maintain a healthy work/life balance even in the face of mounting debts.
Understand the Terms of Your Student Debt Inside and Out
First things first, you need to go through your agreement thoroughly. Interest rates might go down, or there might be concessions in your contract that you can use to make the situation more favorable for you. This will help you understand what your options are and what you can do to resolve debt better and stop creditor harassment. A good way to go into this is to assume that your creditors want you to pay off your loan. Selling off your loan will be a considerable loss to them. By getting in touch, you might be able to work out a different plan that better accommodates your current budget.
Manage Your Budget and Lifestyle
The second step is to reduce living costs as much as possible. It doesn’t necessarily mean downgrading your quality of life, just that you need to be more mindful with purchases and find ways to reduce ongoing expenses as much as possible.
Downsize Your Living
Downsizing your living can mean different things. It could mean reducing or illuminating your shopping habit, or it could mean moving back in with your parents or downsizing your apartment. For your rent, try to spend ¼ of your paycheck only. Living with roommates can help offset costs.
Buy in Bulk
If you have space, always try to stock up on necessities in bulk. Doing so will cost you a lot up front, and should be spaced out over the months, but over the long run, it will help you save so much money.
Invest in Forever
Like buying in bulk, investing in forever is going to cost you more upfront but save you so much money in the long run. You can even reduce the upfront cost by waiting for sale days, though in general, it is best to decide on the product you need and then save up for it for however long it takes.
Enforce Your Rights at Work
To help you manage a better work/life balance, you will want to read up on what your legal rights are at your place of employment. Overtime, for example, is often paid. If you are not getting paid for your overtime hours, then it is time to enforce your rights so that you get paid rightly for the work that you put in.
Know Which Resources to Use
Student loans, credit card debt, medical debt – all of these add up over time. Understanding debt resolution and which debt defense lawyers to go to will help your situation significantly. That is why you need to know which resources to use. You can successfully organize a student debt lawsuit with the right lawyers and know-how, allowing you to fight debt and get on top of your finances once and for all.
A healthy work/life balance in the face of rising debts is going to be one that lets you live as budget-friendly as possible and one that enforces your rights at work. Once you have those two pre-conditions, you can work on finding a balance that supports your mental and emotional wellbeing.