As a college student, you have a lot to worry about. From your exams to projects, deadlines, making a good impression on everyone, to fitting, and so on. You don’t want to add one more thing to it. That is why you must take good care of your finances. College requires a lot of expenses in terms of rents, supplies, projects, travel, and other things like movie nights with friends, and so on.
That is why a college student can have two types of debt. One is a student loan which they took to pay the fee and other college-related things. Others can be credit card debt which can happen if you exceed your credit card limit, and don’t pay on time. Both of these debts are not great for your finances or mental health. They can restrict you from performing well on exams. On the other hand, if you don’t pay them on time, you will have to deal with a debt collection agency.
Most credit card companies and loan providers hire a third-party agency like Cedar financial who has one goal- to recover their money. Although they are professional and ethical, they can put a burden on students already juggling between a lot of things.
So, how can students who are in college ensure that they don't go into debt? By following these tips:
When you know that you have a student loan to pay, you have to be cautious. So, start with creating a budget. Include all your expenses like rent, laundry, supplies, travel, leisure outings, and so on. Make sure that the budget you create, leaves you with enough to pay the debt and save some money for a rainy day.
That is why a college student can have two types of debt. One is a student loan which they took to pay the fee and other college-related things. Others can be credit card debt which can happen if you exceed your credit card limit, and don’t pay on time. Both of these debts are not great for your finances or mental health. They can restrict you from performing well on exams. On the other hand, if you don’t pay them on time, you will have to deal with a debt collection agency.
Most credit card companies and loan providers hire a third-party agency like Cedar financial who has one goal- to recover their money. Although they are professional and ethical, they can put a burden on students already juggling between a lot of things.
So, how can students who are in college ensure that they don't go into debt? By following these tips:
1. Have a budget
When you know that you have a student loan to pay, you have to be cautious. So, start with creating a budget. Include all your expenses like rent, laundry, supplies, travel, leisure outings, and so on. Make sure that the budget you create, leaves you with enough to pay the debt and save some money for a rainy day.
Also, make sure that you stick to the budget. If some month, some important items took more money than you had the budget for, sacrifice some of your leisure activities.
Note: To make a budget, figure out your income sources. It can be a grant or allowance from your parents or your summer job.
Whenever you get a summer break, get a side job. Or you can even work part-time during your semester. It can be a simple and easy job like delivering things or being a barista. Also, you can get freelance work or work for a company editing their documents from home. It will be a great way to pay your debt and save money.
If you have had bad experiences with credit cards in the past, it is best to not have one. But if you can manage to use it without getting into a credit card debt, use it. Set a low limit and keep track of its usage. If you do get into a credit card debt, make sure you start to pay it, even if it is with a small amount. Otherwise, it can leave a mark on your credit score.
If you are renting a room, food can be expensive. The best way is to cook most of your meals at home. It will make a ton of difference.
Following these tips can ensure you have a debt-free college experience.
2. Get a job
Whenever you get a summer break, get a side job. Or you can even work part-time during your semester. It can be a simple and easy job like delivering things or being a barista. Also, you can get freelance work or work for a company editing their documents from home. It will be a great way to pay your debt and save money.
3. Be careful with credit card
If you have had bad experiences with credit cards in the past, it is best to not have one. But if you can manage to use it without getting into a credit card debt, use it. Set a low limit and keep track of its usage. If you do get into a credit card debt, make sure you start to pay it, even if it is with a small amount. Otherwise, it can leave a mark on your credit score.
4. Cook at home
If you are renting a room, food can be expensive. The best way is to cook most of your meals at home. It will make a ton of difference.
Following these tips can ensure you have a debt-free college experience.
No comments:
Post a Comment