Managing Student Loan Debt
Pilot training is critical to kickstart your path to becoming a pilot. This is why people who want to get the best training start borrowing from two options: federal and/or private student loans. Once students no longer have to worry about where to borrow money for school, they are able to focus entirely on choosing their preferred flight school. This is why people who want to become pilots get their Stratus loans funded by private companies or banks. But it’s absolutely crucial to manage your student loan debt, even as you transcend from pilot training.
Pilot salaries vary drastically based on experience, skills, gender, or location. After a pilot achieves his commercial pilot certificate or manages to attain the airline transport pilot certificate which requires 1,500 flight hours, you’ll start getting paid for flying. An average of $128,000 salary for pilots who have 2-5 years of experience.
As you grow older, you will find yourself in other forms of debt. Examples are credit cards, car loans, personal loans, mortgage loans, and home equity loans. But usually, it’s the student loan that you will be first introduced to. Once you’re able to manage one type of loan, it’ll be easier to manage the others. Especially if you have more income.
What happens if you have more than one debt to pay off?
It can be stressful to have more than one debt to pay off. But this is normal for a regular, young adult in the United States. There are things in life that you need to pay off! This can include your phone bill, your student loans, your house mortgage, etc. So how can you decide which debt to pay off first? And how do you manage to pay off several debts in the long run?
Here are a few tips you want to consider!
● Open an emergency fund. An emergency fund is crucial for situations you might not want to happen but you should definitely prepare for. Like an accident or a car repair bill. You should put your savings or emergency fund in a place that you’ll be able to easily access and gain interest at the same time. An example would be a money market account.
● Pay off the highest-rated debt. When you have your emergency funds in the right place, you can then pay off other debts that are most urgent, like a monthly credit card bill.
● Remember to enjoy what you’ve earned! You simply can’t expect to be working all the time just to pay off your student loan debt or your credit card bills. Take a few hundred dollars out of your savings and spend it on a weekend getaway. Life is too short to constantly be working!
How do you efficiently and effectively manage your debt?
This is going to be completely up to you but it always helps to have a bit of help from others to get started on how to manage your debt.Here are the tips that always work best:
● Consider your next goal. Having a goal helps you determine the amount of money you’ll be spending next. If you’re planning on buying a car, then you need to adjust your earnings to accommodate that huge chunk of the bill for next month!
● Maximize your tax benefits. You should do research on mortgages and student loans to get certain discounts or to avoid high interests.
● Check out your credit score. The higher your credit score, the more credit you’ll be able to earn!
● Use credit cards wisely. Paying on time with regular monthly payments will help build your credit score positively! This will also reduce any chances of being charged late fees. You can use your credit cards to slowly pay off one debt, like your student loans!
What is the best way to organize your debts?
The best wayto pay off your debts efficiently and effectively is to organize everything in a spreadsheet or in any type of budgeting tool. This allows you to view all details in one place, making it easier to streamline the process. You also have a list of your outstanding student loans and other debts, which you’ll be able to check off your list from time to time. It’s important to get all the details right so make sure to input the following information:
● The name of the debt
● The due date of the debt
● The interestrate and type
● The account number
● The minimum payment required
● The balance after making a payment
● The possible tax benefitsHere are more tips you can use to grind down on your student loan:
● Get a budgeting tool or a monthly budget worksheet
● Learn what’s in a credit report
● Consult a financial professional