EMERYVILLE, Calif., Feb. 13, 2018 /PRNewswire/ -- Student loan debt often takes center stage in the conversation about millennial finances, but student debt is only one part of the whole topic. To truly get a picture of millennial finances and financial status, net worth may be a more valuable metric. American Financial Benefits Center (AFBC), a private document preparation company focusing on federal student loan repayment programs, suggests borrowers take a wider look at their finances and come up with a plan to grow their net worth.
Net worth is a simple representation of a financial situation. Consumers who keep track of their net worth over time can tell if they are on track for their financial goals or if they need to change the plan. Consumers can calculate their net worth by adding up the value of their assets, including investments and savings, and subtracting their liabilities, such as credit card debt and student loans.
"Student debt is an important factor in today's financial landscape," said Sara Molina, Manager at AFBC. "It has tremendous power, too. Borrowers can either look at their balances and despair, or they can make a plan to tackle their debt and improve their overall financial situation."
While student loan debt may be dragging down those net worth numbers for many, that certainly shouldn't hold anyone back. AFBC encourages individuals to look at their net worth with a goal and to come up with a plan to improve it. To do so, they can focus on boosting their income, increasing their savings, or reducing their debts. When high debts make the first two options difficult, perhaps the first step should be to address those debts.
Federal student loan borrowers have access to repayment plans that base their payments on their income and family size. Borrowers with high payments or low income may see a significant drop in monthly payment amounts. When applied to a goal to improve net worth, those freed up funds can easily go toward paying down debts or increasing savings. Each individual should consider their unique situation when deciding which course of action is best.
"AFBC assists its clients in an effort to lower any worry they may have about high student loan payments getting in the way of their financial goals," said Molina. "Instead, they can focus on what needs to be done to improve their net worth and financial situation as a whole."
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. They adhere to strict customer service guidelines and strive for the highest levels of honesty and integrity.
AFBC is a member of the Association for Student Loan Relief (AFSLR), and each representative on the phone has received the Certified Student Loan Professional certification through the International Association of Professional Debt Arbitrators (IAPDA).
To learn more about American Financial Benefits Center, please contact:
American Financial Benefits Center
1900 Powell Street #600
Emeryville, CA 94608
SOURCE American Financial Benefits Center