It is really easy to rack up debt when you are in university. The demands of a new social life can weigh on you pretty heavily. You need to buy expensive outfits, organise parties and hangout at costly places. How would you fund yourself? Of course, with the help of credit cards. However, few students understand that unwise spending habits can force them to get deep into debt.
Most university students graduate with some great memories, a degree and a stubborn burden of debt that affects their credit worthiness and purchasing power. It is possible for you to avoid this miserable situation by being responsible and disciplined during student life. Here are a few tips which will help you to save money and eliminate credit card debt while you are in university.
Save on Text Books
Buying new books can turn out to be a huge expense for students. So, smart students rent books instead of buying them. You can also consider buying second hand books from Amazon or eBay where you can often find books at half of the cover price, or even better. Another great alternative is to download books from the Internet. Of course, all kinds of books are not available for free download, but many popular books are accessible on the internet. Project Gutenberg and OpenCourseWare are good places to start. Even iTunes has a lot of freely available classes and lectures available to download.
Shared Accommodation
You hate your university dorm, don’t you? You cannot be blamed because if it’s anything like mine, it can be noisy and uncomfortable. However, private accommodation can set you back a pretty penny. Therefore, consider sharing the room with your university mates to spread the cost out. Sharing privately rented accommodation can work out a much better alternative to student accommodation and can be just as cheap too, if you know where to look. Sharing the apartment’s rent, electric bills and even groceries would bring down your cost of living without compromising on your lifestyle.
A Part Time Job
It’s never too late, or early, to embrace frugal living and start a budget to cut down your expenses. But the truth is that you do need some extra money to support yourself. Most students take up a part time job to pay their bills and avoid getting into more debt. You may work as a summer intern or in a local restaurant, or even try the Internet to earn money online. Freelance writers and programmers are in a lot of demand with constant job openings available on websites like oDesk and Freelancer.
Throw Away the Plastic Cards
Be honest with yourself and admit the truth. Your credit card isn’t the problem, it’s you! If you’ve been caught buying things you could not afford, then it’s time to change your habits and use cash whenever possible. If you find this as an inconvenient option, then use a debit card. The point here is to spend your own money rather than borrowing.
Debt Elimination Strategies
Good money management alone is not enough to get you out of debt. You need to follow an effective strategy to eliminate your debt, and stay that way. Do you have multiple credit card debts like most students? If yes, then try Dave Ramsey’s debt snowball method (highly recommended). This strategy is extremely effective in case of revolving debts. The debt snowball requires you to list your debts in ascending order. Then try to pay off the smaller debts first and make minimum payments on all other debts. Follow this tactic with ‘gazelle intensity’ and all your debts will be eliminated soon enough.
The Top Credit Cards for Students
| Credit Card Offer | Purchase Rate (p.a.) | Balance Transfer (p.a.) | Annual Fee | Apply now | ||
|---|---|---|---|---|---|---|
| rate | period | |||||
|
Westpac Low Rate Credit Card NO annual fee 1st year. Low 1.9% pa. for 9 months on purchases. Hurry! Apply before 02 July 2012. |
1.9% | 3.99% | 6 months | $0 |
Featured Card |
|
ANZ First Visa Credit Card Ideal first credit card. 60 second approval. Decent balance transfer offer. |
19.39% | 2.9% | 12 months | $0 |
Editor’s Choice |
Marc writes for OVLG, a US-based company that helps people settle credit card debt.
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St.George Vertigo MasterCard
ANZ Platinum Credit Card
HSBC Credit Card