Are you still struggling to pay off your student loans? If you have been facing rising debts since graduating, you may be wondering what your options are in terms of debt settlement. In today’s blog post, D. & A. MacLeod Company Ltd. shares some information on the different methods that you can use to decrease or get rid of your accumulated debts and student loans.
What Graduates Should Know About Debt Consolidation
Debt consolidation consists of gathering all your debts into a singly monthly payment so that you can pay them off in a single bill instead of multiple ones. In certain situations, you may be able to get a lower interest rate as well.
While debt consolidation might be a viable option for some people depending on their financial situation, we strongly recommend also considering alternative debt resolution methods.
Alternatives to Debt Consolidation to Settle Student Loans
Here are some of the other options available to you to help you pay off your student loans:
Seek help from the Repayment Assistance Plan (RAP) – If you qualify for it, this could help you pay back your student loans in smaller payments.
Start making payments while you’re still studying – It is important to start paying off your debts as early as possible. Some financial institutions also don’t start charging interest on student loans until you graduate.
Start a budget and use online loan calculators – This will give you a clear understanding of your monthly income and expenses, which in turn will help you manage your debts better.
File a consumer proposal – This allows you to renegotiate your debts without incurring the loss of personal assets. If it’s been seven or more years since you’ve graduated, you may also be entitled to some debt relief.
Use tax deductions to your benefit – In Canada, you are eligible for a 15 percent tax credit on the interest paid on government loans. You can use this to cover some of the income tax that you owe.
Open a separate savings account – This will help you avoid spending your money on other things. You can even set up automatic transfers to make your debt payments.
Apply for student loan forgiveness – While the eligibility will vary from province to province, this may help you get rid of a portion of your student loan debt.
Filing for bankruptcy is a last resort. Speak with a licensed insolvency trustee. This will allow you to settle a portion of your debts by giving up some of your unexempt assets.
Choose D. & A. MacLeod Company Ltd. to Help You Manage Your Student Debt
If you are looking to settle some debts, it is important to first have a good understanding of all the options available to you to help you make an informed decision. Here at D. & A. MacLeod Company Ltd., we understand that accumulated student loans and debts can have strong negative impacts on your life. We are therefore here to offer advice and guide you on the several options available to you to pay off your debts. From credit counselling to helping you manage your budget better, we offer a wide range of personal services. Thanks to our licensed insolvency trustees, you will be able to make informed decisions and effectively tackle your student loans.
Contact us today to learn more about our services. We have several convenient locations across Ontario to answer questions about managing your debts in Ottawa, Kingston, Pembroke, Cornwall, Smiths Falls, Kanata, or Brockville.
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