During your college years, you most likely built up a ton of debt (unless you were given grants and awards). This debt can bite you hard once you graduate and you’re probably looking for ways to reduce it the best you can – before you’re hit with interest.
While your student loan debt and tuition can’t be easily paid off by just any means, you (like millions of other students) have most likely built up credit card debt for school equipment: books, laptops, clothes, food, rent and more. There are many ways to reduce your debt. Here’s what you should know:
Living below your means
Many college students get used to the idea of paying with a credit card now and paying off the debt in increments later, but these habits can quickly raise debt faster than you can pay them off. That’s why many college students start paying off their debt by creating a budget.
Planning a budget around the necessities could give you a better idea of just how much you can put toward paying off your debt.
Don’t open new credit cards
College students often get several letters and emails each day asking for them to sign up for new credit cards. It can be tempting to sign up for another credit card if you already have one.
Credit card applications are an easy trap that can cause you to build up more debt than you can afford. It’s best to avoid committing to new credit cards if you still have any unpaid debt.
File for Chapter 7 or 13 Bankruptcy
One of the many options people have to reduce debt is filing for Chapter 7 or 13 Bankruptcy. While bankruptcy won’t usually get rid of student loans, you might have an easier time paying off your credit card debt. That can free up enough money to make a dent in your student loans.
Reaching out to experienced legal help could fast-track you out of your debt and move on with your life.