Graduating high school is a big milestone in life. It is an exciting time that often makes young adults feels a bit of freedom. Along with the excitement of freedom and going off to college is the sense of requiring more financial assistance. This can be in the form of credit cards, vehicle loans, store credit cards and a variety of other options. Debt can build up fast, below are the main ways that it happens. It is important to avoid going into too much debt. You may need to find quick ways to make money so you don’t fall victim and find yourself in financial trouble.
Student Loans for College
Student loans do not have to be paid back until college is complete in most cases, but this is instant debt right out of high school. For those that choose to leave college, the debt is still there. These are low interest loans and your wages or bank account can be garnished if they go unpaid. Court judgments can also be made against you if they are unpaid. Paying for education is important so finding employment during college and immediately after is important.
Taking Personal Loans
Personal loans are often sought by those fresh out of high school, as well as payday loans. These types of loans are intended for quick cash to help you when you’re in a bind. Keep in mind, personal loans do often have higher interest rates and have to be paid back much faster than other types of loans or credit. Garnishments are also possible with this type of loan if they are unpaid.
Students or those that are freshly 18 often go on a credit card application spree. While having money when you need it is great, the debt builds up really fast. The interest on a credit card or store credit card is much steeper for younger applicants. Minimum payments are ideal but the interest continues to build on the remaining balance so your debt continues to build. Be careful with the type of credit card you choose right out of high school.
Financial aid is different from a student loan and is often scheduled to begin repayment immediately following graduation from college or secondary school. Once you are approved and accept the financial aid this is debt. Most college students apply for financial aid as soon as they are accepted to an institution, which is generally before high school graduation.
These types of debt are the most common for those that are fresh out of high school. Immediate debt in the way of student loans and financial aid are nearly inevitable but do at least allow you to finish your secondary schooling before they have to be repaid. Watch your debt and keep track of interest rates, spending and maintain a budget to keep your debt to a minimum. If you take payday loans, make sure that you can afford the increased repayment amount and that you can make it on time.