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Why You MUST Develop a Debt Repayment Plan that REALLY Works for You
Student loan debt. I'm not crying, you're crying. Do not be surprised when you come to realize that the moment when your graduation tassel has been turned, the countdown begins. Your student loan debt has officially become a ticking timebomb. If you were granted the financial flexibility that a loan allows, there come a time when more structured terms of your debt repayment plan become a hard fact reality. Trust me here, beware the overwhelming temptation to casually miss a payment due date.
The moment when your find yourself spiraling down the slippery slope that is loan default, the upward recovery will more than likely bring a bead of sweat to your furrowed brow.
We all agree that repayment is a "yes", default is a "no" for all intents and purposes.
Let's continue to use student loan debt as a prime example. According to the Federal Student Aid website, "If your loan continues to be delinquent, the loan may go into default. The point when a loan is considered to be in default varies depending on the type of loan you received."
Debt Default Consequences
During a weekend our family enjoyed visiting my son living away at college, we made a quick stop at my bank's ATM to withdraw cash to pay for a local attraction. The helicopter ride we were planning to experience offered a small discount for cash paying customers, so we chose to take advantage of the savings. My youngest son saw the money being dispensed from the machine and exclaimed, "You're rich!"
We expanded the conversation with a life lesson discussion on the importance of prioritizing our needs before our wants in life. We may not want to repay our loan debt, however, it makes budgetary sense to review your assets, spending habits, and take the agreed upon financial repayment terms as a serious contractual commitment.
Failing to make an actionable debt repayment plan may find you faced with a decreased credit rating, lowering your future financial potential. With out a strategic budget, you may need a series of years to reestablish a satisfactory credit rating. When we find ourselves negatively impacted by the devastating consequences of loan payment default, the adverse consequences to offset payment delinquency might include include any of the following-
- Acceleration of Loan Repayment Terms
- Denial of Debt Deferment, Forbearance, or Repayment Plan
- Credit Bureaus Reporting of Default
- Withholding of US of Federal Tax Refunds or Federal Benefit Payments
- Salary Garnishment
- Legal Proceedings and Related Expenses
Debt happens. Realistically speaking for an overwhelming majority of us, we will at one point or another in our lives maneuver ourselves through the highs and lows of debt management. Arming ourselves with a shield of discipline and determination, debt reduction is a manageable process.
Consult with a reputable financial advisor to help you construct a framework to guide your monetary expenses as you work to eliminate your debt.
Learn how to develop your debt repayment plan today at debtconsolidation.com
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