How to Prioritize Debt After Graduation

Many important life decisions come after graduation; what job to take, where to live, and let’s not forget how or when to repay those student loans.

According to our 2017 Student Debt Poll, two in three Canadian graduates finished college or university carrying student debt. Here’s some advice for all of you recent grads looking for ways to deal with and prioritize your student debts:

1. Always make your minimum payments. As you take on new financial responsibilities, building and maintaining good credit is very important. That’s why you should always pay at least the minimum payment on your debts. Make more than the minimum payments whenever you can. This will not only help you pay your debts faster, but will also save you interest charges over time. Use a debt repayment calculator to estimate how much you can save by making more than the minimum payment.

2. Pay off high-interest debt first. Whether it’s a student loan, a bank loan or a credit card, juggling multiple debts can feel overwhelming. One way to alleviate some of this stress is by focusing on your highest interest debts first, also known as the debt avalanche method. While still making the minimum payments on your other debts, take any extra income or money you have, from graduation gifts, or tax refunds, and put it towards your highest interest loan. Doing so will minimize the total amount of time it takes to get out of debt since interest won’t accumulate as quickly.

3. Know where to turn for student debt help. If you’re having difficulty managing your student debt load, or you’re feeling overwhelmed or stressed by your debt, don’t wait to reach out for help. There are many options to help you get back on track. For example, the federal government offers a number of repayment assistance plans. Check out the repayment assistance page to find out what options are available to you, whether it’s a revision of payment terms, reduced monthly payments or no monthly payments based on your financial situation.

Lighting it up

P.A.'s Zablocki leads Regina to victory on Day 4 at Esso Cup

17h ago

WORLD SOFTBALL

Group stages officially set for Men's Softball World Cup in P.A.

23h ago

Safety first

Safety concerns and tips surrounding discarded needles in P.A.

Apr 23, 2024

One big advantage of making debt repayment a high priority: once you’ve paid off your student loans you’ll be able to reassign that money to your other financial goals. Simply finding the repayment method that works for your lifestyle can mean getting out of debt sooner than you expected.

For more ways to stay motivated and stay on top of your finances, keep an eye out for my next column for more #DebtSolutions.