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New trends reveal that student loans and a degree is not the only thing that students are graduating with. Credit card and consumer debt are increasing in popularity, as more students than ever before are looking to credit as the cash flow problems that come with not being able to work a full time job and attend a full-time class schedule.
If you are one of the thousands of students dealing with credit card debt, here are some solutions that could help you be on your way to a debt-free life, while preserving your credit rating.
1. Ask for help.
Parents, relatives, friends and family members are all part of the support system for a college student. Consider asking close family members for a personal loan, as this would come without interest. Interest rates for students are often higher than other demographics, as they lack adequate credit history. Did you know that the majority of student credit card interest rates are upwards of 20%?
2. Stop spending.
There are many things that college students can save money on. It could be a simple trip to the supermarket, rather than a trip to the vending machine, the local fast food joint or the local pub. Drinking and fast food costs hundreds of dollars a month to maintain, and this should bill should not be footed by your credit card!
3. Find the time for a job.
A part time job could allow the college student to make up to a thousand dollars a month in income. This money could help with tuition, help with the credit card bills and help with expenses and a savings account so that debt in the future can be avoided.
4. Preserve your credit rating.
Your credit rating is the key to getting a loan for a vehicle, a home and any other large purchases that are going to be financed in your future. Make sure that monthly payments are made on time and that no payments are missed.
5. Make monthly payments on time and never miss payments.
Missing payments and late payments could mean an increase on the already high student credit card interest rate. As little as one missed payment, or two late payments could mean the automatic increases!
6. Ditch the card with the annual fee.
Save up to a hundred dollars per year with a no-frills rewards card, or standard credit card.
Using these tips you can deal with a little debt, or a lot of debt. Creating a budget and paying off the debt will leave you with less stress, and more time to hit the books.