Strategies to Graduate with Less Debt

Being a college student is practically synonymous with being on a strict budget. With huge commitments to your studies and little time to work, it's easy to graduate with tens of thousands of dollars in debt that can take decades to repay. However, there are many different strategies students can employ to reduce their overall debt load. Using payday loans through Cash USA, being mindful of credit card traps, using student loans wisely, and taking on work will all assist you in graduating with a reasonable amount of debt.

Loans
If your car breaks down or a textbook is stolen, your first instinct may be to use a credit card. Considering that the interest rates on cards offered to students can be quite large, taking advantage of a payday loan is usually a better option for two reasons. First, a payday loan does not require a monthly payment. Once the loan is paid in full out of your next paycheck, there is no ongoing expense. Second, the fees and interest on a payday loan is calculated beforehand. You know exactly how much your loan will cost up front. This is not the case with a credit card.

Avoiding Credit Card Traps
Some credit cards will increase your interest rate after a single missed payment. Others will charge outrageous fees if you accidentally exceed your limit. Using credit cards is a quick and easy way to saddle yourself with a huge amount of debt at a sky-high interest rate, so be sure to use them wisely. Some students make it a habit to lock their cards in a safe or leave them in a safety deposit box to reduce temptation. Others are disciplined enough to pay the balance in full when the statement arrives each month. Be honest with yourself and use credit cards frugally.

Using Student Loan Wisely
Most student loan disbursements come in huge chunks a few times a year. While less-responsible students may spend the proceeds on fancy technology, eating out or concert tickets, a student who hopes to graduate with less debt than their peers would do well to draw up a budget beforehand. Write a list of your month obligations such as rent, utilities, insurance and food. Then set aside a small budget for discretionary spending. Finally, set aside a portion for emergencies in a savings account and resist the urge to spend it. This disciplined approach will avoid financial catastrophe for the six weeks before your next student loan disbursement.

Taking on Work

While finding a traditional job that will work around your course load can be difficult, there are a wide variety of ways to bring in some cash without flipping burgers or waiting tables when you should be studying. Freelance writing, tutoring, and babysitting can all offer flexible hours and workloads that you will find easier to fit into your schedule than a traditional job. Signing up for a work study program can also help you earn money. By doing so, you will have to rely less on loans during your college years. This approach can save you thousands of dollars in interest over the repayment period of the loans, so it is critical that you find a way to bring in an income. Be creative! Don't be afraid to offer your services on the campus jobs board or to use online advertisements to reach potential customers.

By utilizing these strategies, college students can avoid graduating with an unacceptable amount of debt. Setting the stage for financial health while you are young will help you make better decisions once you have your degree in hand.

This guest post comes from CashUSA.org. Cash USA help consumers get the best payday loans online.