Attending college can help you start the career you’ve always dreamed of but can also leave you feeling overwhelmed with debt. Whether you are a new student and want to minimize student loans or you have completed college and want to pay down your debt quickly, there is a solution that will help you meet your goals. Creating and sticking to a plan is the most efficient way to become debt free.
Cut the Extras
One of the best ways to manage debt is to create a budget. First make a list of where your income is spent, making sure to include even small purchases like coffee from a nearby deli and online purchases of books and music. Cutting your expenses, and devoting that money to paying down your debt, will ensure you are able to become debt free in less time. Remember to keep all your receipts, or a comprehensive list of what you purchase, for a month to create a feasible budget based on your income and spending habits.
Ideally, your budget should be based on cash spending. Living on an entry level salary can be a challenge but it is vital to avoid using credit cards if you want to become truly debt free. Start putting aside a small sum each pay period for emergencies and use cash to pay living expenses and debts. With a solid budget in place, you can avoid using credit cards and pay down your debt without accruing more debt in place of student loans.
If you are having trouble creating a budget or need to explore your options for eliminating debt, talking to a debt counselor can assist you in finding a solution. Most communities offer debt counseling free of charge. Your debt counselor will consider your personal spending habits and income to create a budget that reduces your debt within a specified time period while including important investments such as your emergency fund and 401k contributions.
Getting an advanced degree is one way to increase your earning power as a new graduate. With the ability to earn more, you can easily pay down student debt quickly. With universities like http://electricalengineering.online.njit.edu/ offering online master’s degrees, you can even work and attend college in your free time to maximize your earnings while getting an advanced degree.
College debt doesn’t have to weigh you down. There are tools that can help you manage your finances and increase your earning potential so that you can slay college debt and become financially successful after obtaining your degree.