Government Debt Consolidation Loans – Update

minibikemulisha asked:


I have $15,000 in government student loans at 5.5%. They go back into repayment in 6 months. I’m just entering the work force and I’m thinking about doing a graduated repayment plan, it will rise as I make more and inflation rises. I have $20,000 saved in my bank account from work and saving. One friend of mine told me to use half of the $20,000 towards my loans before I consolidate making my loans at $5000, but that is money that didn’t come very easy for me and not very easy to make back since my income is currently low. Another friend told me to put my loans into repayment and invest my $20,000 I have saved and use my student loan interest tax write off to put towards taxes I have to pay from my investing. Use the money earned to pay my student loan monthly payments. I have no credit card debt, mortgage payments or any other debt besides a small car loan.

Any advice towards this situation would be great. If I should invest I’m open to investment advice, I’m not familiar with investing and I know the stock market is a mess at the moment. Thanks for your time.

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la428282 asked:


My debt is as follows:
Student Loans: approximately 25k
Credit Card : 5,500
Car Loan: 8k

I am about to enter my 3rd year in my first “real job” after college- and i think its time to get ahold of my finances. I am no longer taking loans (obviously) or using my credit card.. and my each religiously monthly.

But.. ive heard about debt consolidation loans and im confused:

1. do they lower your monthly payment?
2. Do they negatively affect your credit?

If someone could explain what they are, if theyd be good for me, pros and cons etc id really appreciate it!

thanks!

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