Finishing your online educational program is a major accomplishment, but if you're graduating with debt, it may seem overwhelming. Debt management is an important skill to learn as you work to secure your financial future.

Debt and Online Degrees
If you're graduating with debt from student loans, you're not alone. It's important to understand that defaulting on your loan--failing to repay the loan in a timely manner--can seriously affect your credit for years.

Budgeting for the Future
The months that follow graduation might mean new income and new responsibilities, so it's the perfect time to create a new budget to match your new financial situation. Look at your salary and your essential and nonessential expenses, including loan payments, savings, living expenses, transportation costs, and emergency funds. Identify your short-term and long-term goals, set reasonable timelines for paying off debt, and make a plan to save for large future expenses, like a vacation or a car.

Debt Consolidation and Refinancing
If you're graduating with more than one loan, you may have more than one interest rate and repayment plan. You may be able to consolidate your loans, combining two or more bills into one payment plan with one interest rate. A consolidation loan uses a weighted average of interest rates on all of your loans to give you one monthly payment with one interest rate. The interest rate may be higher than your lowest rate and lower than your highest rate but with one payment, repayment will be easier. Many financial agencies also offer a reduction in interest rates if you sign up for automatic monthly payments, and you can often get a better interest rate if you've made payments on time in the past.

Your debt has surprising benefits. By paying your bills on time, you're building good credit, which can be essential when you're ready to buy a car or a home. By taking control of your debt now, you'll be able to enjoy the benefits of good credit in the future.