Graduating soon
Question: I graduate this coming April…which is great…but also brings on reality where I must begin my debt repayment.
I was as worried before, but with the current state of our economy, I am really beginning to get worried!
My debt is approximately as follows:
Student loan: $20,000
Line of Credit: $15,000
Vehicle: $20,000
Being in the position, currently, not knowing what pay rate I will be getting when I get a job upon graduation….
Is there anything I could do now to start planning how I can pay off my debt as quick as I can?
Answer: You ask and excellent question, and it is good to see that you are being pro-active in dealing with your situation. Ultimately, until you know what pay rate you will earn at your new job, it is difficult to accurately plan your future. However, there are some steps you can take.
First, you should make a household budget so that you can see exactly where you spend money each month. By starting the budgeting process now, you will have a head start once you are working. You should also read our budgeting tips article for more information.
Next, you should understand all of your options, including a debt management plan, consumer proposal and bankruptcy. If you get a good job none of those strategies may be necessary, but you should understand them now in the event that they do become necessary in the future.
Finally, based on this research, you may want to have a meeting with a credit counsellor or bankruptcy trustee to review your options in detail, so that once you are working you already understand your options.