These days, more and more jobs require skilled workers with postsecondary experience. At the same time, the cost of going to school continues to rise and more people are taking out multiple student loans to afford the education they need. The burden of having to make multiple loan payments every month can make life after graduation complicated.
If you’re in a similar situation, you may have considered consolidating your loans. With the relatively high cost of living in Metro Vancouver, it can be hard to make your dollar stretch. Your monthly income can be quickly eaten up by rent, phone bills, groceries, and transportation; while the additional responsibility of multiple loan payments can stretch your budget to the breaking point. Even though there is a definite upside to consolidation, it’s not always the right decision. Here are some of the pros and cons of consolidating your student loan debt.
Choosing to consolidate your student debt into a single loan can help you create some financial wiggle room. For starters, the payments on your consolidated debt will be less than the combined minimum payments of multiple loans from various creditors. If any of your current loans have variable interest rates, it can be stressful not knowing how much your next payment will be. Most consolidated student loans in Burnaby have a set interest rate, so you pay the same amount every month. Knowing your monthly payment in advance can help you budget better to stay on top of your debt.
If you’re struggling to make ends meet from month to month, student loan debt consolidation may be your best option. However, a consolidated loan will not only take longer to pay off, it will also cost you more in the long run. That’s why it’s important to carefully consider whether or not student loan debt consolidation in Burnaby is right for you. A consolidated loan effectively combines your existing student debts into a larger, single loan with a longer term. Even if the interest rate is lower on the consolidated loan, you will actually pay more over time.
If you’re thinking about consolidating your student loan debt, call Westgeest & Associates in Burnaby. We help clients find the quickest route out of debt while paying as little as possible.