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3 debt relief options for former students

On Behalf of | May 8, 2022 | Bankruptcy

You’ll have noticed that, after graduating from college, you have a large amount of debt on your back. It doesn’t help that you were eligible for so many credit cards while in school. Much of the debt you put on those flimsy plastic cards helped cover your textbooks, meals, gas and maybe a night or two getting drinks.

Now you’re expected to pay all that debt back with that fancy new degree. These creditors believe surely you have a line of well-paying employers waiting to hire you. You may have a new job or internship coming up, but you may not be making great wages for another couple of years.

This may have you wondering: “How do I deal with all this debt?” You might want to consider your options for debt relief:

Wait for college loan debt forgiveness

One of the pressing social issues of today is how much college loan debt our nation has. Every year it seems college students are struggling to pay back their loans. Luckily, many college students are hopeful for their loans to be forgiven in full. 

A disappearing act on the nation’s college loan debt crisis could help students focus on other forms of debt. Yet, students may be disappointed if the promise of student debt relief turns into fairy tales. 

Consider a new budget

Much of the college experience is fast food, parties, coffee, late nights studies and overpriced textbooks. You may find this way of living was expensive and excessive. Reducing your spending could help you focus more on repaying your debt.

File for bankruptcy

There are two different types of bankruptcy, Chapter 7 and Chapter 13, that can help wipe a large sum of debt. The term may sound intimidating, but it has helped many people recover their financial footing. While it’s exceptionally difficult to get student loans discharged in bankruptcy, getting rid of the majority of your other debts can make it easier to repay those student loans.

You shouldn’t let your debt build-up surprise you. You may need to consider more options when looking for debt relief.