How to get out of newly graduated debts?
Several important of debts
If you are a recent graduate of the university, receive our greatest congratulations, it is a great step that we know required your extraordinary effort and dedication and that, surely, will not take long to bear fruit. However, we also know that in many cases, it was also a reason for you to get involved in one or several important debts, either to pay for your studies, tools, materials or to move from where you lived to where you studied.
It is not what you had in mind, but now we must find the best way to end the commitment made to continue with your life plan as soon as possible.
Millennials are a generation that has been concerned with continuing their studies, regardless of whether this means committing to a loan of up to 1 million pesos. A year between 5,000 and 8,000 university credits are released.
How do I get out of debt if I am a recent graduate?
Without experience, or very little, the jobs you will find will not be managerial, however, with a little discipline and planning you will be able to pay off your debt sooner than imagined. Meanwhile, it is important that you take care of your finances, we recommend the following:
Before you start spending on yourself with your first income, plan well what you need. At the beginning, perhaps, you will have to make an investment in your wardrobe, however, limit yourself to the minimum and indispensable and consider allocating 20% of your money to the payment of your debts.
Set a long-term goal:
In addition to finishing paying what you owe, think about what you would like to do with what you earn, whether it is buying a car, or becoming independent and living alone. For this you must also allocate 10 or 15% of your salary.
If you have already occupied 30 or 35% of your income in the previous items, now consider saving another 10% in an “emergency fund”. Even if you don’t use it, at the end of a year you can invest it and receive revenue for your money.
Do not buy before paying:
Soon, if not already, you will have access to credit cards. They are an excellent tool that, in addition, will allow you to make a credit history but, be careful, you must use it in a responsible way. Do not buy products that you do not really need and that you will end up paying for a whole year or up to two. If you are patient, you will soon have the resources to buy what you like, at a better price and with a much sharper taste for the experience. If you already have problems with your credit card overdue, it is best to seek expert help.