Important Note on Student Consolidation Loans

The reason for consolidating a student loan is, most often, a lack of money.

So the question is: Is consolidating your student loan actually going to solve the real problem? While it is a wise thing to do and can possible provide some relief to a stretched monthly budget, it seldom has the effect that most people hope for. It has long been said that there is good debt and there is bad debt. Good debt is debt that brings money in every month, and bad debt is debt that takes money out of your pocket every month. As an illustration, the mortgage on a house that gets rented out and provides some kind of income to the owner is good debt. Student loans, vehicle finance, personal mortgages and whatever else that costs you money every month, is 'bad debt'.

But more to the point: most often, student consolidation loans will not take you any closer to financial freedom and has little effect on a stretched budget. So what is the solution? The real answer to most financial problems is more money. Not money saved by consolidating student loans, but earned money. Particularly passive income. Passive income is income that does not involve your constant participation. Rental income from a property you own would be one of many examples.

There are various avenues to pursue when it comes to passive income. More attention will be given to both passive income and student consolidation loans in following posts. For now, the two most highly recommended resources worth considering are: