Student loans continue to be a financial burden for many individuals in Orlando and across the country. Some may turn to bankruptcy or other debt relief options in order to eliminate some of their other financial obligations. This may result in making more money available to pay off student loan debt. Under current law, student loans may not be discharged in bankruptcy except under certain hardship exceptions. However, a Chapter 7 or 13 bankruptcy may prove to be beneficial in some situations.
Typically, paying many forms of debt off more quickly saves additional interest charges. This normally means that the quicker the payoff, the less one will have to pay. Estimates indicate that those who graduated from college in 2012 have an average balance of $29,400 in student loan debt. That's a significant amount of money to pay back, but it can be done if the right steps are taken.
Many don't want to think about living frugally, but it may prove to be beneficial when it comes to paying off student debt. For example, if nonessential items are eliminated, such as cable TV or weekly visits to the spa, there's some extra money to pay toward student loans. Other possibilities to save money include moving back in with mom and dad or even getting a second job.
Many in the Orlando area continue to struggle with student loan debt. Even though this type of debt will typically survive a bankruptcy proceeding, there are still a number of debt relief options to consider. In some cases, bankruptcy may be a financially sound option to obtain financial freedom and work toward a debt-free future.
Source: U.S. News and World Report, "How to Pay Off $30,000 of Student Debt in 3 Years", Hal Bundrick, May 5, 2014