American Financial Benefits Center on Taking on Debt While Paying Down Student Loans

EMERYVILLE, Calif., April 13, 2018 (Newswire.com) - Having student loans can be such a financial burden that taking on other debt may feel overwhelming. Borrowers may even feel that they won't be approved for any additional credit because of their student loans. However, it is possible, though it may require some preparation and shopping around. American Financial Benefits Center (AFBC), a document preparation company that assists its clients with federal income-driven repayment plan applications, reminds borrowers that financial goals can be attainable with the right resources.

"Student loans can easily consume a borrower's finances, especially if the payments are high," said Sara Molina, manager at AFBC. "When you need to take out another loan or line of credit, student loans shouldn't get in the way of that."

When you need to take out another loan or line of credit, student loans shouldn't get in the way of that.

Sara Molina, Manager at AFBC

There are many reasons that individuals may consider taking out loans when they already have student debt to contend with each month. They may need a good car to make commuting to work more reliable. They may be looking for a credit card with cash back or other rewards. They might even be taking out a loan to help pay for their other debts or to cover an emergency.

Lenders often require decent credit to accept a loan application. While there may be ways to improve credit, even poor credit can result in a loan. Borrowers may need to shop around to find the best deal, but they should look closely at the loan terms before accepting.

AFBC suggests that anyone who is looking to take on debt while paying off student loans make sure that any new loan will be manageable. They should know ahead of time what the monthly payments will be and whether those payments will fit into their budget. If they need to, they may be able to reduce their student loan payments by applying for a federal income-driven repayment plan (IDR). Such plans calculate payments based on income and family size and may end in forgiveness after 20 to 25 years in the program.

"At AFBC, we believe federal student loans can work with other debt, not necessarily against it," said Molina. "Our clients are in IDRs that we hope have lowered their payments enough for them to pursue other financial goals. Whether those goals include taking on debt, we hope they feel prepared and confident in their ability to manage it all."

About American Financial Benefits Center

American Financial Benefits Center is a document preparation company that helps clients apply for federal student loan repayment plans that fit their personal financial and student loan situation. Through its strict customer service guidelines, the company strives for the highest levels of honesty and integrity.

Each AFBC telephone representative has received the Certified Student Loan Professional certification through the International Association of Professional Debt Arbitrators (IAPDA).

Contact

To learn more about American Financial Benefits Center, please contact:

American Financial Benefits Center
1900 Powell Street #600
Emeryville, CA 94608
1-800-488-1490
​[email protected]

Source: American Financial Benefits Center