Accumulating too much debt can cause many future problems. Missed monthly payments on items such as bank loans and credit cards could cause a consumer to default an account. Defaulting on a loan can ruin personal credit ratings for years to come. Finding a lender for loans on homes or automobiles will be nearly impossible, and if someone is lucky to obtain a loan, hefty interest rates and larger premiums will be a haunting reminder of past mistakes. Consumers with defaulted accounts may also incur additional fees on top of the original balance owed. Attorneys and collection agencies, used by debtors to collect on these defaulted loans will carry large fees that can comeback to the consumer.
I personally plan to repay my student loans by using my education to obtain a better career, and most of all a higher salary. I do not expect to walk out of Phoenix into a larger salary without loads of work in between. Prior to graduation I plan to seek employment at a large company such as Boeing, AT&T, Charter Communications, Ameren, etc. Be it an internship or a temp to hire position, I hope to have my proverbial foot in the door and work at receiving promotions. Upon graduation I will continue at my position and begin exploring my options within the company. I will also branch out and explore other opportunities elsewhere to increase my personal income. By the time the initial payment notice arrives, I hope to be way ahead of the game and budget the payments effortlessly by revising my financial plan once again.
For the moment, this remains only as a plan on paper and a dream in my mind. Making the monthly payments and eliminating the debt sounds phenomenal, but many events in life do not always go as planned. The grants that I received as a student will help lower my education costs. Other positive ways of controlling my loan could be monitoring my monthly loan statements closely, keep a record of payment history and do everything possible to pay on time. If...
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