Struggling through college and a part-time job, you think it is only you living the worst student life there is. However, you are not alone when it comes to bearing the burden of crushing student loans.
According to the Credit watchdogs located at Experian, there currently happens to be $1.44 trillion in Student loan debt across an estimated 44 million borrowers.
What do I choose between?
Choosing between Down payments or paying off student loans can be a hard choice to make. It is important to understand that your decision depends upon factors that would be specific to you.
But what matters most is the debt-to-income ratio. What is the debt-to-income ratio? Your debt-to-income ratio is the amount of monthly income of yours that goes into paying debts. Mortgage lending associations usually look out for back-end debt-to-income ratio of 36% or less.
Can you do both?
The question that arises is, can you do both? It is doable, and should be looked at as an option only when you have your back against the wall.
You can start off with a bare-bones budget, which is a kind of budget that is required to just survive and fulfill your financial duties. You can even look at hitting up some scholarships which can cause a huge dent in your student loans, thereby loosening up your burden and drifting you away from a bare-bones budget.
Also, vigilance goes a long way. There are certain institutions that offer you lesser amount of down payments and a decent interest rate.
In the long run, these minuscule decisions can put your finances back on track.