Student Credit Card Debt

Credit Card Debt and Students
The unfortunate truth is that students suffer from the majority of credit card debt. Student loans become combined with credit card debt to meet the financial shortfalls that come with higher education. Many times, students are not able to maintain full time employment while attending college or university, and therefore turn to credit for all of their daily needs.

Are you a student facing credit card debt? How do you deal with the stress that comes along with it? Speaking with a debt management counsellor and creating a feasible budget are both ways that recent graduates are dealing with the student loan debt that they have accumulated, along with the credit debt, while obtaining their education.

First, credit card debt should be avoided. Many students are tens of thousands of dollars in debt with student loans. However, there is one large difference between credit card debt and student loan debt; Student loan debt comes with a percentage of the interest rate that is seen with credit cards. Avoiding credit card debt can be difficult, but it is essential to maintain responsible use of the credit card.

A part time job could be the answer to your financial shortcomings. As students, many of us have lived frugal lifestyles. Living above your means with the use of credit cards can be avoided with simple part time jobs. One to two shifts per week could be enough to fund the purchase of books, spring break vacation, dinners out and even car insurance.

If you are facing high amounts of student loan debt combined with credit card debt, should you consider a consolidation loan? The benefits of a consolidation loan mean higher flexibility with a lower interest rate and a longer payment term. Consider the amount that is being consolidated; are you really willing to pay this debt for the next ten to twenty years?

Many students that consolidate their loans are facing terms as long as twenty years; are you able to repay these loans before the terms expire? Are you willing to extend the terms of the loan, to obtain the lower interest rate. Although consolidation loans may seem enticing with the low monthly payment, it is important to take into account how long the money will be owed.

Are your current student loan finances not covering the essentials? Ask for help. From parents, family and friends, help is available to many college and university students; from a place to live, to additional funds and grants through schools in the form of scholarships, research places that can provide additional funds. Chances are, this found money will go a long way in your student career.

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