College graduates face more than one financial challenge when leaving college. Not only are they competing with more experienced workers for a job, they are also facing student loan debt that has been continually on the increase during the last few decades.
While the average student borrows close to $27,000 for their educational needs, a great portion of any income earned will go back towards paying back the loan with accumulated interest. And like almost every other consumer, the student debt is placed on top of credit card debt, home mortgage payments, and the paying of monthly bills.
One former Arizona student who graduated in 2007 discovered that his overall debt was much higher than he ever anticipated. Nearly half of the debt came from the combined student loans that he now shares with his wife. Since he and his wife’s combined income was just barely enough to cover his bills, the couple found themselves using their credit cards anytime some sort of emergency arose.
Couples often only find themselves dealing with their debt after they have added all their expenses up on paper. Planning a budget is nearly impossible when one does not even understand how much debt that they owe. Putting it all down on paper can often give individuals or couples an idea as to what steps need to be taken in resolving their debt.
Attorneys can advise as to which course of action will best meet the needs of clients in debt relief circumstances. In certain cases simple planning will be enough to provide debt relief. Though student loans cannot be eradicated through filing of bankruptcy, managing one’s other debts through Chapter 13 bankruptcy can still be an option.
Source: Fox Business, “How to Obliterate Your Student Loan Debt,” by Christina Couch, June 10, 2013