4 Things Every New Graduate Should Know About DebtJun 18, 2018
Hey there, new graduate! Congratulations! You’ve survived all those papers, exams and late night study sessions and it’s now time to start a new chapter in your life. While this is certainly an exciting period, it can also be a bit stressful, particularly when trying to figure out how to deal with the debt you’ve accumulated during your days as a student.
We certainly understand that new grads are feeling the pressure and decided to make this the focus of our recent podcast episode. In this podcast, our LIT’s (Licensed Insolvency Trustees) sat down and discussed the four things that every new grad should know about dealing with student debt. Here’s an overview:
- Create a plan
As Paul Ihnatiuk, LIT from our Hamilton office suggests, having a plan to reduce your debt is key and should be one of the first things that you do after graduating from college or university. When creating this plan, it’s important to consider your current situation and keep this is mind; if you are living with your parents or you’ve scored a sweet full-time gig right after graduating, it may be possible to pay down your debt a little more aggressively. However, not every grad decide or have the opportunity to move back home. In this case, create a realistic debt repayment plan according to your income and other financial responsibilities that you can actually stick to.
- Prioritize reducing your debt
Finding a new job, a place to live, buying a car… there are quite a few things you’ll need to do after graduating and, as Craig Fryzuk, LIT from our Calgary office suggests, it can be easy to forget to add reducing debt to this to-do list.
Prioritizing your debt is really important for new grads in order to build financial security. Although you may not be in a position to fast track paying down your student debt now, it’s essential to keep reducing your debt near the top of that to-do list.
- Don’t forget about other debt
While your student debt is definitely important, do not forget about the other debts that you owe. As Doug Jones, LIT from our Barrie office, suggests, paying down any high-interest credit card debt should be a priority focus as well as avoiding adding any more consumer debt to your current debt load (particularly the high-interest variety!)
- Know where to find help with debt
Finally, as Beth Ann Bone, Senior Administrator and Insolvency Counsellor from our Oshawa office suggests, knowing where to find help with debt will also help new grads with their finances. For student loan debt, it’s important to remember that there is a 6 month grace period after you graduate in which you’re not required to pay.
For dealing with other types of debt, online resources, financial planners, parents and even a Licensed Insolvency Trustee can help you manage and help you reduce the debt that you currently owe.
For more debt solutions and help with student debt, listen to our podcast.