When you think about the worst types of debt I think most people will immediately put
credit card debt at the top of the list. And, they’ve got good reason to do so. Credit card
debt is usually the most expensive debt we’ve got. In fact, the average interest rate for
newly issued credit cards is now somewhere between 14% and 15%. Nobody in their
right mind would pay those rates for any other consumer loan product such as an auto
loan or a mortgage.
But while you’re vilifying credit cards as the greater of all evils, let me throw another
one at you to consider; student loan debt. We are now in MORE student debt than
we are in credit card debt. We’ve now got over $830 billion in student loan debt. And
while student loan debt has advantages over credit card debt, there are also several
disadvantages.
Pros – Student loan debt usually carries a much lower interest rate than credit card
debt, and usually it’s not even close. Further, student loan interest is normally tax
deductible. You can’t say that about credit card interest. And finally, you’d like to
believe that all student loans were taken because you have funded an education. This
is normally correct but not always. For example, you still owe the lender even if you
never graduate. And, graduates who are unemployed, underemployed or “stay at home”
parents are going to have a hard time arguing that they’re getting sufficient return on
their student loans.
Cons – Student loan debt is not normally statutorily dischargeable. That means you
can’t simply wipe it out by filing bankruptcy. However, you can almost always wipe out
credit card debt, and most other debts, in a bankruptcy. In addition, student loan debt
is normally much higher than your credit card debt. The average household credit card
debt is $15,000, for those who have credit card debt. Student loans can get into the 6-
figure range, easily.
Michael B. Citron is an internationally known public speaker and author. He lectures for professional associations worldwide. Michael is a serial entrepreneur who is dedicated to living the American dream, and helping others to do the same. His role at DisputeSuite.com has placed him in the spotlight of the credit repair industry. DisputeSuite is the largest provider of technology and education services to the industry, and has been a catalyst in the forward movement to standardize the credit repair industry.
P.S. DisputeSuite provides a variety of solutions for your credit repair business. From engaging custom websites, to dispute processing services, to a robust CRM with automations and portals, DisputeSuite is a One-Stop Shop to making your Credit Repair Business A Success! Let’s chat today to discover the best plan for you: 727-877-6812 or support@disputesuite.com
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