If you recently graduated from college and are about to become a homeowner, you're in a somewhat unique position. You're about to embark on a great journey, but at the same time, you're also taking on a lot of debt. That said, it is possible to successfully manage a high debt load if you're careful.
So how can you make sure you can pay your mortgage, your student loans, and your mortgage expenses? Here's what you need to know.
Make Sure You Have An Emergency Fund
Managing a high debt load isn't necessarily a challenge if you have a consistent income stream. But if interest rates rise on your floating mortgage, if your portfolio doesn't do as well as expected, or if you lose your job, you may find yourself unable to pay your expenses without dipping into your savings. That's why you'll want to establish an emergency fund – a spare supply of cash you can live on for 6 months or longer, if necessary.
Extra Cash At The End Of The Month? Attack High-Interest Debt
Mortgage rates are at a historical low right now, which makes now a great time to become a homeowner – but if you're going to carry a mortgage and student loans, you'll need to be smart about how you repay your debts. High interest rates can quickly add up and eventually crush you, which is why your debt with the highest interest rate should be your primary priority. This is most likely your student loan – so if you have some extra money left over at the end of every month, put it toward your student loan first.
Paying off a student loan and a mortgage at the same time is a daunting task, but it is possible. We’re happy to help identify repayment strategies that work for you today.