Chasing dollars instead of seeking dream profile is what engineering students do under the burden of loan repayment. According to the statistics of National Student Loan Centre, it takes a Canadian student an average of nine years to repay his/her loans. Therefore, it becomes vital to build effective loan repayment strategies.
Set some rules loan can end up soon
Though you get a six month grace period from government banks after graduation, you should use it effectively. Start paying the loan earlier if you get a part-time work during the last year or you get full paid job before the grace period. Try to start loan repayment as early as possible because the interest starts getting accumulated. The loan can be refinanced at lower interest rates as bad credit loans Canada.
Government and a student line of credit both allow making payment more than the minimum required amount. Whatever money you get whether it is as a birthday gift, or a bonus on work put that straightway into the loan repayment.
Make a list of the most economical service providers for utilities like cable, internet, and mobile. Try to share accommodation with a roommate even if you live with your parents. Develop habits like using your own bank ATM to avoid unnecessary service charges. Before buying insurance for car and house compare the best prices. You would not want to get stuck in bad credit loans Canada.
Stick to Budget
When you have an approximate figure of your monthly expenditure, try to stay consistent with that. The entire remaining amount should go into loan repayment.
Use the credit cards instead of cash that provides maximum reward points and discount offers. Use these to fulfill entertainment needs like Star Bucks coffee, shopping or movies.
Sometimes there are incidents that disturb lives of youngsters like heartbreak. Though most students repay loans some get trapped and cannot overcome their emotional tragedies. Yet, it is essential to focus on loan repayment to get rid of financial hardships in future.
Never Miss Payment
Under a program called Payment Relief, students are allowed to skip loan payment five times for six months. Avoid taking help in such program unless extreme emergency. The principal amount multiplies like anything due to interest. Just think of the time when you will be in a phase of financial freedom with no fear of bad credit loans Canada. Such thoughts will motivate you.
Know the Consequences
If the loan payment is not made in time despite many aids available to help students, these will hurt the credit score. To protect your credit ratings keep the loan on good standing. A good credit score will be required further in life, for example, to apply for a loan to buy a house.
Keep Contact Information Up-To-Date
At any time, if you change your phone number or email id, do not forget to update it to your loan provider bank. This way you will always keep in touch and get all the notifications of upcoming payment or any charges incurred.
To conclude, there is little effort in finishing loan repayment early, but there is immense pleasure in financial freedom so one should try their best. One of them is having bad credit loans Canada.