How to Avoid Student Debt
There is an alarming rate of increase in student loan debt cases. However, debt management solutions are available that are helpful for avoiding mounting debt. The following tips discuss this further.
Debt Management Solutions for Students
For the sake of having a good time, many students pile up a large amount of debt. As a result, by the time they graduate, the debt can reach a bankruptcy level. The idea of getting a degree instead of debt might sound next to impossible, but thanks to debt management solutions, it’s very much accessible.
Here are some debt management dos and don’ts for students.
- Many credit card companies visit universities to woo students with their latest offerings. Don’t be tempted. But if it is absolutely necessary, opt for the one with low interest rates and a low credit limit so that you won’t accumulate debt.
- Don’t keep more than one credit card. Remember, the more credit cards you have, the more likely your chances of falling into debt.
- Avoid using credit cards for your payment. Instead, pay with a debit card. In this way, you can keep tabs on your expenditures because you will be spending directly from your checking or savings account.
- You can take on a part-time job or summer job to cover your expenditures. However, your education shouldn’t be compromised just to get the extra buck.
- Instill the habit of living within your budget. Irresponsible shopping can’t make life enriching; instead it leads to heavy debt. Per the debt management mantra, if you can’t afford something with your own money, you shouldn’t buy it with a credit card either.
Debt Management for International Students
If you are a student studying overseas, getting into debt can have serious repercussions. You may have to drop out of college or university and be forced to return to your country. So it is better to stay out of debt. You should plan accordingly before moving overseas. There are tuition fees, room and board, books and unexpected expenses like medical bills to consider. In case you don’t have enough saved to cover all these expenses, it’s natural to fall into the trap of debt. However, a debt management plan can help international students find part-time jobs to cover their expenses and adopt a healthy attitude of living within a balanced budget.
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