Manage debt and credit:How graduates can avoid financial troubles

June 26, 2013 by  
Filed under Debt & Credit Free

Once students graduate out of college, it is important for them to make some adjustmnents to their budgets and to make some major financial decisions. The way they transition to the professional world, get a steady source of income and live a life of a young adult may have a huge impact on their financial future. So, to retire successfully all the recent graduates must create a credit card debt repayment plan, cut down their credit card use and position themselves to stay financially afloat.

Ways to manage credit and debt

You can follow the below given financial tips to manage your debts as well as credit:

Make minimal use of credit cards – You may have depended on your credit cards to pay for books, tuition and various other items during your collegde days but after graduating out of college, you’ll have to break that habit. As you’d be starting off with your career and get busy with other responsibilities, incurring increasing number of credit card bills will make your early life a lot more stressful. So, it is better to have a practical spending plan that includes paying for most of the items with cash. However, you shouldn’t use your credit cards to pay for luxurious things like a holiday trip or a computer.

Create a debt repayment plan – It may happen that you too are struggling with both college as well as credit card debt, just millions like you are doing. If you find it difficult to stay current on your student loan payments, then you can apply for one of the loan consolidation programs. This will help you to make the monthly payments on the basis of your income, thereby reducing your student loan debt pretty more quickly. In this case, you’ll have to follow a proper budget since neglecting that may have adverse effects on your finances in the long run.

Identify all sorts of credit blunders – Dont fall for those too good to be true credit card offers that offer to save you around 15 percent money, if you get them. This you may come across at an electronic store or at a restaurant. Though these credit cards might give you some temporary returns, yet they’ll eat up on your monthly income with exorbitant interest charges as well as hidden fees. So, it is best to conduct extensive market survey and to study the loan terms before actually signing on the dotted line.

Finally, at the onset of bigger and more stressful life, it helps a lot to keep one’s credit clean. This is because creditors look for a good credit score to offer the best rates when people apply for loans to them.