If you’re a master debt fighter wondering how to get out of the vicious cycle of minimum payments and high interest rates on credit cards, keep reading. This simple guide could help you get the start you need to get back in the black.
Professors, like most people, leave the University with some debt. You may have managed to clear it, but sometimes circumstances prevail and you end up back in the owing money stage. Maybe he pulled out a card from the store and it was too easy for him to spend it. Maybe he had a credit card with a high APR, but he’s gotten used to paying only the minimum monthly payments, which means he always owes money and pays a lot of interest. Whatever the reason, there is a way out.
Rather than paying many small payments or covering the costs of many smaller debts, it may be beneficial to consolidate these debts into one amount, no matter how large. Loan companies now offer a way to consolidate these debts into a monthly payment plan.
Before you see which companies offer debt consolidation and teacher loans, follow the step-by-step plan below.
1. Calculate how much you really owe
You’d be surprised how many people actually forget to do this. Most will believe that they owe that much, when in reality it is usually much more. This is often a defense tactic. Ignorance can be bliss, but if you are applying for teacher loans [http://www.loans-for-teachers.co.uk]you can’t address the problem if you don’t know how serious it is.
2. Set a budget you can stick to too
This way you will know exactly what you can spend, how much you will have at the end of the month. You can then find out how much you can afford to pay in payments per month if you choose to go for debt consolidation master loans.
3. Search online for a debt consolidation loan
By pooling your debts into one basket, you can actually get a lower interest rate on your loan. For teacher loans you can find loans with lower rates and longer repayment terms, which means you pay less each month, making it easier to manage, and overall, you could pay less over the life of the loan compared to loans at shorter terms or with higher rates.
4. Get a free, no-obligation quote
Many websites will offer free teacher loan quotes with no obligation. This means that you can compare which loan will be best for your situation.
5. Without warranty or with warranty?
If you are a renter or live with family or friends, your only option is to apply for an unsecured teacher loan. This is not a problem. There are many loan companies that offer these types of loans, specifically for people in your situation. All it means is that you’re a little more limited with how much you can borrow. You can expect a loan of between £3,000 and £25,000 that will need to be repaid over a period of 1 to 10 years. The advantage of these is that they are quickly requested and offered. If you are applying for an unsecured teacher loan, expect payment with one week of application.
secured loans, also known as homeowner loans, are only available if you are currently paying a mortgage on a property. You can borrow more, as long as your home equity covers the value of the loan, but typically it can be up to £100,000. Most lenders offer slightly lower interest rates and longer payment periods because they have your home as collateral. A bit of a safety net for them if you default on your payments.
So, as you can see, there are loan options available for teachers, or even anyone, who is struggling with debt. By leveraging your financial situation to your advantage, you can get out of debt with a low-cost teacher loan. The advantage of the loan is that each monthly payment will be a fixed amount, so you know exactly how much you will pay and when it will be paid off – a light at the end of the tunnel.