Escaping the Stress of College Debt

Transfer the Balance It will often be helpful to transfer the balance of one credit card to a new one. Credit card companies offer no-interest introductory rates that offer immediate savings. Some cards offer benefits such as lower rates and more lenient regulations compared to others.

Students should be cautious when switching cards, making sure to read the fine print. A new card may have a lower interest rate than a current card, but a large annual fee may offset the benefit of the decreased interest. Students must look at all aspects of the card - including interest rates, fees, penalty costs - and do a quick calculation to see if the switch will help.

Switching cards continually is not advised, however. Jumping from one card to the next often will worsen a person’s credit history, scaring off companies with the impression that the cardholder will quickly jump ship. Creditors could stop offering good bargains and hike up their rates.

No Unnecessary Spending Students should also cut down on reckless spending by asking themselves, “Do I really need this?” If the answer is ‘no’ the buyer should put off the purchase. Of course cutting spending doesn’t mean doing away with necessities. A student eating less to have more money for the movies should change priorities. Entertainment is not a trade off for malnutrition.

A student that chooses to be smart with debt will make those loans disappear before they become an overwhelming source of stress.