Christmas is just 2 days away and the air is probably festive. Everyone is starting to let go of their stresses of their daily life so that they can relax with their friends and family members during this holiday season. However, don’t you think that when you’re strapped due to your outstanding student loan dues, it sometimes becomes a big challenge to honor the spirit of Christmas and show your loved ones how much they mean to you by finding the right presents for them? So how will you manage your finances so that you don’t spoil your Christmas celebrations? If you don’t have any idea on how to do so, here are some tips that you may follow.
- Stay aware of your loans: Start getting familiar with the loans that you have. Take a pen and paper and jot down the total amount that you owe, the interest rate that you have to pay and the due date on which you have to make the payments. The better you know about your loans, the easier and simpler it will be for you to organize and strategize your bills.
- Stay in touch with your loan servicer: This can indeed be a tricky step because the loan servicers are indeed difficult to reach but you should be persistent about this. It is your loan servicer who can help you out in a number of ways like switching between repayment plans and delaying payments during difficulties. Establish contact before you get into serious repayment trouble so that your loan servicer is familiar about your present debt situation.
- Create a wise budget: Clearly laying out a budget that you’re sure you can live with is the very first step towards staying on budget. If you’re just looking forward to a lump sum for the month, it’s easy to lose track of where your money is going. So, you should separate out all the money that you need to spend on necessities for a particular month and then allocate a prefixed amount of leisure money every week. This way you can plan to stay within a budget.
- Plan ahead of time: Who knows, down the road you might be eligible for loan forgiveness but this is only possible if you have a record of making a set number of payments on time, throughout a few years. So, you shouldn’t harm your eligibility by missing payments. Missing payments will also hurt your credit and could also lead to a default in the long run.
- Set up an auto payment system: One way of preventing yourself from missing payments in a busy schedule is by setting up a monthly automatic payment out of your checking account. If you set up a payment date and set an amount, that amount would be debited from your account and credited to the account of your loan servicer. This way you can be sure about timely payments.
So, if you don’t want student loan debts to mar your Christmas parties, you can follow the above mentioned financial steps to stay on track.