Anxiety caused by credit card debt can be a highly emotional situation and people need to be sure they’re working with a reputable, established company that has their best interests in mind.
Denver, CO (PRWEB) July 28, 2011
Whether you are a student returning to school or a parent sending your children to school, there are costs associated with furthering one’s education. Tuition, books, supplies, housing, etc… all add up and can cause a major strain on a family’s finances. Many students and parents of students have turned to using credit cards to help cover educational expenses when traditional student financing does not go far enough. Below are some common methods of paying for your education, a list of consequences one may endure if you default on your student loans, and some tips from Prestige Financial Solutions on how to take control of your rising credit card debt.
Resources for students
1. FAFSA, Free Application for Federal Student Aid, to find out if you qualify for government-funded loans or grants. Parents may also qualify for the Parent Plus loan from the government.
2. Apply for “private” student loans through Sallie Mae or other banks. Be cautious: even many so-called “private” student loans are government-funded.
3. Ask your student advisor or your school’s financial advisor for reputable websites where you can apply for scholarships.
4. Save, save, save to pay cash for school.
Stay on top of your student loans! Repercussions of defaulting include but are not limited to:
1. Wage garnishment without a court order
2. Suspension of state professional licenses
3. Garnishment of social security/disability income
4. Withholding IRS tax refunds
If your debt to income ratio is too high, here are some tips to help you achieve debt relief:
1. Create a monthly budget by reviewing income and expenses to determine how much you can afford to pay toward your credit card bills. You can use the debt calculator on our website (listed below) for additional help.
2. Once your budget has been determined, you can explore your options, such as:
- Pay creditors more than the minimum amounts.
- Get a consolidation loan to pay off all cards.
- Explore credit card counseling programs to see if they can reduce your principle while maintaining an affordable monthly payment.
- Research debt relief programs, and look specifically for programs that do not charge upfront fees and can eliminate your principle balance within 36 months or less.
- Declare bankruptcy; a last resort due to length and cost of the process and the effect it will have on your financial well-being.
Prestige Financial Solution strongly recommends that students consult with a debt advisor to help assess their situation and further explain options. To find reputable companies who may be able to help you, visit the Better Business Bureau’s website. Consumers should be well-informed and ask questions, as there are pros and cons to each option.
“Anxiety caused by credit card debt can be a highly emotional situation and people need to be sure they’re working with a reputable, established company that has their best interests in mind,” said Amy Thompson, a founder of Prestige Financial Solutions.
Prestige Financial Solutions is one of the nation’s leading pay-as-you-go debt settlement programs. The program can be found online at http://www.prestigefinancialsolutions.com or by calling 800.441.7297.