Fresh Out Of University, Waste-Deep In Loans

julieK By julieK, 2nd Aug 2011 | Follow this author | RSS Feed | Short URL http://nut.bz/2_c.xvv_/
Posted in Wikinut>Money>Mortgages

For over two decades, tuition fees in Canada have been on a rise. Currently, their growth is roughly double our inflation and increases the financial burden of education all of us keen on learning.

Credit situation of graduates

For over two decades, tuition fees in Canada have been on a rise. Currently, their growth is roughly double our inflation and increases the financial burden of education all of us keen on learning.

Amassing thousands in debt in one’s late teens is a difficult burden to live with. This means that all your outlooks, your future as far as you can see, contain some kind of a debt repayment schedule you must obey.

The requirement of re-paying your credit dwindles your discretionary income – that is to say what remains after you’ve coped with all your recurring bills. If this sounds familiar, getting approved for a mortgage sufficient to buy you a worthy apartment or house may be nearly impossible

Statistics Canada says the average debt obligation of Canadian students lasts more than 7 years past the date of graduation. This is quite a extensive timespan, and it is only the average, so there must be people who take longer to rid themselves of this immense weight. Thus, many people with university education aren’t capable of taking out a new debt commitment until they are past their twenties.

To best offset this unfavourable situation, it is imperative that the young person manage her or his monthly budget accurately so as to maintain a solid credit rating. Stable credit rating may make it simpler for one to apply for more financing later on.

So, you seriously desire to become an owner of a condominium? Mortgage is not that bad, however, since as soon as you have moved into a house or apartment you own, you have no rent. This means that a new mortgage is really not that much harder on your budget if you have rented before. Also, there is no need to purchase life insurance until one has kids or a dependent spouse. Let’s also hope that your acquired skills will help you get a better paying job that will then reward you with more financial freedom.

Tags

Debt, Loan, Mortgage

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author avatar julieK
I am Toronto realtor and green enthusiast

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Comments

author avatar Sivaramakrishnan A
8th Apr 2012 (#)

The cost of education is going through the roof everywhere. But whether one gets a well paying job thereafter is a moot point. Thanks for the share, julie - siva

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