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Lawsuits filed against Navient for misleading borrowers

When debt piles up, many people in Durham may struggle with how they are going to pay it and which loans should get paid off first. Student loans are a major source of debt for many people in North Carolina and across the country. While loans for education are given by both federal and private lenders, collection duties are often contracted out to third-parties.

Are there any downsides to student loan forgiveness?

If you live in North Carolina and are struggling financially, you would most likely be relieved to receive some form of forgiveness that would alleviate you of the burden of your student loan debt. You would be far from alone on this. According to the Huffington Post, student loan debt is on the rise and 11.8 percent of borrowers are currently in default. While having student loan debt forgiven is obviously helpful to you on a personal level, there may be some more widespread implications to think about.

Forgiven debts may lead to tax bills for some

Under some circumstances, people in North Carolina may have debts that they owe forgiven. For instance, a credit card company may agree to forgive a consumer’s debt after a certain amount of time or a settlement may be reached where the company agrees to accept a partial payment. However, the consumer may then be liable to pay taxes on the amount that was forgiven.

Companies look to debt relief as a way to woo employees

Many people in North Carolina who have a high number of financial obligations may feel overwhelmed and stressed out about how they are going to pay back what they owe. Most people rely on their jobs as their source of income, but sometimes it may not be enough to get out of debt.

Using a personal loan to pay off an existing debt

People in North Carolina who have a lot of debt may have heard about person loans and wondered whether they are a good idea. While using a loan to consolidate one’s debt can be beneficial for some, it is not always a wise solution for everyone. It largely depends on a person’s discipline and spending habits.

Beware of student loan debt relief scams

Many people with student loans in North Carolina may have heard about programs that can help them reduce their loan payments or consolidate their debt and thought that they sounded too good to be true. Such programs actually do exist and they are available for free through the federal government. However, that has not stopped some private companies from preying on unsuspecting consumers and providing them with the same services for an average of $613, according to CNBC.

Co-signing of loans can lead to Chapter 7 bankruptcy

It is only natural for people in North Carolina to want to help others for whom they care to establish themselves financially. However, co-signing a loan may not only lead to a spoiled relationship but, in some cases, even Chapter 7 bankruptcy. If a person feels comfortable co-signing a loan, it is vital that he or she thoroughly studies the contract — including the fine print. It may be even better if an experienced attorney goes through it before it is signed.

Do my debts go away after I die?

If you have debts when you pass away, what happens to them will depend on what types of debts they are and what assets you leave behind. Any assets you have will be used by your estate to pay off your debts, according to the Penny Hoarder. It is up to the executor of your estate to identify all of your debts and see that they are taken care of. It is important to note that your debts are considered an extremely high priority and must be dealt with before any inheritances are given out.

Is it smarter to put money toward my debt or my retirement?

While it may seem like paying off your debts should always be your number one financial priority, in some situations that may not be the case. You are likely going to want to retire at some point in your life and neglecting to put money away for your retirement while you are young could be a huge mistake. In fact, according to NerdWallet, not putting enough money away for retirement could actually end up costing you more in the long run.

How can I manage my student loan debt?

If, like many people, you took out loans to pay for your education, the thought of someday paying them off may seem daunting. Each month you make a payment but the loan amount never seems to go down. However, according to USA Today, there are ways to manage your student loan debtthat can alleviate some of the burden and help you get your loans paid off.

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