American Financial Benefits Center: Unexpected Expenses Don't Have to Derail Student Loan Repayment
EMERYVILLE, Calif., March 9, 2018 /PRNewswire/ -- Repaying student loans can be a balancing act for some borrowers. High payments can leave borrowers on shoestring budgets, and if an unexpected financial obligation comes up, it can often derail payment. American Financial Benefits Center (AFBC), a document preparation company that helps its clients apply for and stay enrolled in federal repayment plans, recognizes that student loan repayment can easily get derailed. The company suggests that borrowers make a plan to save up an emergency fund and keep credit card balances low in the event of a potentially derailing financial surprise.
"Student loan payments are important, but sometimes things come up that take financial priority," said Sara Molina, Manager at AFBC. "When that happens, borrowers who have any savings are better equipped to deal with them than those who don't. It can be hard to build savings on a budget, but we encourage everyone to try. It really can be worth it."
Any number of things can come up in life demanding financial attention without warning. Medical emergencies and auto accidents are unpredictable and can hit a budget hard. Even routine auto work can sneak up on drivers. These days, identity theft and fraud are legitimate concerns as well and can cost $400 to $621 on average. Families with kids often have necessary expenses that add up and can strain a budget.
To prepare for any type of financial obligation, financial experts suggest that consumers save up an emergency fund. They recommend having three to six months' worth of living expenses saved up, but even having a couple hundred or a thousand dollars can be extremely helpful as backup funds. However, with student loans demanding high monthly payments, how can borrowers set aside any money?
Many borrowers find income-driven repayment plans helpful when they need to make some room in their budgets. By calculating federal student loan payments as a percentage of discretionary income, IDRs have the potential to reduce monthly payment amounts and create some room in the borrower's budget. Any extra funds can be set aside to build an emergency fund or used to pay down credit card debt, which can also help in the case of financial emergencies. An emergency fund is preferable to using credit, and any credit used should be paid down as quickly as possible, but it's often helpful to have options.
"At AFBC, we specialize in IDRs and help our clients apply for them when it makes sense for their situation," said Molina. "We believe that income-driven repayment plans are powerful tools in many financial situations, and we hope that our clients are making the most of them."
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.
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).
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]
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SOURCE American Financial Benefits Center
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