In order to avoid graduating with student debt after college, you need to start with a clean slate. Avoid debt from the beginning! Degree Match suggests five easy tips to staying out of debt in college. These tips include:
- Tracking how you spend your money,
- Creating monthly budgets,
- Avoiding the use of credit cards,
- Having a back up emergency fund, and
- Avoiding late payments.
(Degree Match, 2011)
You don’t always need that new t-shirt you saw at the mall. I realized that first hand when I noticed that my spending habits were burning a hole in my bank account. Most bank companies now have online tools to help you budget and keep track of your money. Look into these resources to help your financial budget. Being able to manage your credit card usage is also important in college students avoiding graduation with student debt. Along with managing your credit card usage you must know when it is appropriate to use it, know how to choose a card with a low maximum allowable spending limit so you are not tempted to overspend, as well as setting a budget for monthly payments. Avoid late payments on your credit card and try to pay the amount in full each month. Having a back up emergency can help with this, but remember, it’s only there for emergencies! Following these tips will lead you to a successful, debt free college student.
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