The Financial Challenges for a 2009 College Graduate

Student loan statistics indicate that the average 2009 college graduate is going to receive their diploma and be in debt to the tune of $22,000 in student loans. This does not take into consideration the roughly $9,000 in additional credit card debt that a majority of students will graduate with as well. This leaves many people just entering the job market with an enormous financial burden. Even someone with good financial management skills will be challenged to meet their basic expenses easily.

Generally, college loan installment payments allow for a minimal payment on a monthly basis, which can be helpful to a recent graduate just getting their “foot in the door” where their career of choice is concerned. Still, carrying a heavy load of debt when just starting out in the world can be a challenge. Often, recent graduates have roommates and share the cost of living in order to get a bit ahead. As they put away savings, they generally work away at their debts as well.

Naturally, not everyone who is a 2009 college graduate is going to find it easy going where finances are concerned, and will probably need a bit of help from time to time. The financial support they need might come from parents or friends, but it might also have to be found from an independent financial lending agency.  Because a recent graduate will be likely to have a significant amount of debt compared to their current income, the more traditional lenders like banks and credit card companies are not likely to extend reasonable offers.

The next direction many will turn for access to cash is their existing credit card accounts. These too are not a desirable option because they charge hefty interest rates, and the recent 2009 college graduate is unlikely to be able to repay the advance in a matter of a few weeks. This means they will be paying for a long period of time and also building up a growing amount of interest over the course of this lengthy repayment period.

Is there a better option? A recent graduate can look into their options for a payday loan. These are short-term, low-cost loans that allow them access to amounts ranging from $50 to $2,000. The lenders do not do an investigation of the individual’s credit score or report, but instead simply examine their current income and their ability to repay it in a reasonable amount of time.

This is a great way for a 2009 college graduate to get ahead and then quickly get themselves out of the debt. Consider that anyone who wants to rent an apartment is going to have to have a security deposit, their first month’s rent and perhaps their last month’s rent as well. The landlord is going to demand this somewhat large sum in order to allow the individual to make a home for themselves. If such a large amount of cash is not available, the individual can simply request this sum in a payday loan and then make arrangements over the coming weeks to easily repay it.

Alternately, the individual might have the money they need to get the apartment, but they may have no money for such items as furnishings or utility account deposits. A payday loan could be requested and the money could be in the borrower’s bank account in as little as a single day.

Using credit wisely is one of the best life skills that a recent college graduate could possible acquire, and properly managing their payday loan could easily be their first step towards financial strength and stability.

For example, someone might graduate with little to no debt due to grants, scholarships and parents or family members supplying the funds for their education. This could leave them with the freedom from debt, but it could also leave them with no credit history. No credit history actually translates into a low credit score. This can cause problems when it comes to renting an apartment, buying a car, and many other situations college graduates might find themselves in for the first time.

Anyone who is a 2009 college graduate is going to be entering the professional world at a time when unemployment is at some of the highest levels on record, credit markets are tight, and the entire financial industry in disorganization. This means that managing personal finances is going to mean a great deal more than ever before.