Every American citizen should be aware and concerned about the current credit crisis generated by escalating student loan debt
Seattle, WA (PRWEB) October 29, 2015
Scott Smith, president of CreditRepair.com, a leading provider of credit report repair services, today addressed the mounting student debt crisis, as student loans for the Class of 2015 begin to come due on Sunday, November 1, 2015.
Of the more than 40 million graduates in the United States who collectively owe about $1.2 trillion in debt, 17% of borrowers are behind on their payments or are in default on their student debt, with those numbers projected to skyrocket. The potential fall-out in terms of both macroeconomic and credit affairs could prove staggering.
“Every American citizen should be aware and concerned about the current credit crisis generated by escalating student loan debt,” said Scott Smith, president of CreditRepair.com. “Burgeoning debt is causing credit scores to plummet, making it increasingly difficult to achieve the classic American dream of financial independence, starting a family, purchasing a home, advancing in your career, or perhaps owning your own business.”
The majority of federal student loans come with a six-month grace period following graduation, during which the recent grad can have some breathing room to find a job, relocate, secure a new business-appropriate wardrobe, etc. “Life is about to get real,” said Smith. “The clock is winding down on this grace period, and young consumers need to be well-prepared to handle their debt in a responsible manner.”
While young adults have a vague awareness of credit and the importance of a high credit score, many fail to recognize the link between loans and credit, and the profound impact it can have throughout life. As of October 2015, the U.S. household consumer debt profile included an average credit card debt of $16,140, average mortgage debt of $155,361, and average student loan debt of $31,946, (based on an analysis of Federal Reserve statistics and other government data).
Smith recommends making all payments on time as soon as the loan comes due. “It is also imperative that common loan debt consolidation mistakes like combining federal and private loans into one loan be avoided, as this could cause interest rates to skyrocket along with the risk of losing subsidy and deferment benefits that accompany Federal student loans,” said Smith.
Additional information, including over 50 tips on how to navigate the credit system, can be found in the CreditRepair.com Student’s Guide to Credit.
CreditRepair.com is a leading provider of credit report repair services in the United States. CreditRepair.com’s team of credit experts educates and empowers individuals to achieve the credit scores they deserve. CreditRepair.com’s technology provides members a personal online dashboard, a credit score tracker and analysis, creditor and bureau interactions, mobile apps, text and email alerts, and credit monitoring. For more information, please visit http://www.CreditRepair.com.