Bankruptcy Law, Credit, Timothy Kingcade Posts

How Recent College Grads should Prioritize Debt Repayment

A recent study by Fidelity showed that 70% of the class of 2013 is graduating from college with on average, $35,200 in debt. This includes federal, state and private loans along with credit card debt. When adjusting to post-college life and the accompanying expenses, here is what financial experts say to consider when prioritizing debt repayment:

1.) Create a budget: Every single dollar needs to be assigned to a spending category. Recent grads need to consider their short-term and long-term financial goals when creating this budget.
2.) Determine which debts to pay off first: If you are looking at a variety of debt including credit cards and student loans, it is important you review the interest rates. Private student loans should be a high priority, as these are often subject to variable interest rates, and unlike federal student loans, can carry greater penalties for missed payments and can impact your credit history.
3.) Paying small vs. large balances: For those college grads that want to see quick results when paying down debt, they may find the ‘debt snowball’ technique to be beneficial. This process works by paying off smaller debts as quickly as possible.
No matter how you decide to pay off your debt, it is important to continue the commitment to repay all obligations timely, without missing payments, which can negatively affect your credit score. It’s important to establish and maintain a positive credit history. A good credit score is vital to renting an apartment, setting up your utilities or even getting a cell phone plan.

Click here to read more on how to prioritize your debt repayment.

If you are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at