College Credit Card Debt (Pay It Off)

Written on January 18, 2010 – 6:29 am | by admin

So you have college credit card debt. You want to pay it off. (You are taking a great first step by reading personal finance sites like Credit Card Outlaw, by the way.)

You can share your exact circumstances in the comments section below if you want advice tailored to your own personal debt situation in an upcoming post on college credit card debt pay-off strategies.

But here are some generic strategies that apply to most college students in credit card debt, which might help you as well:

1. Cut down your expenses dramatically. Cut them down to the bone, and then some. College is the “poorest” section of your life. You don’t have to live like a rockstar. Take pleasure from reducing expenses, buying generic items instead of brand name ones at the grocery store, borrow friends’ clothing. Cook your own food; don’t eat at Chipotle every meal. Don’t buy $250 jeans. Don’t go to Cancun or Amsterdam until you can afford it. Neither place is going anywhere.

2. Chop up the cards that have gotten you into debt. Use only a debit card or ATM card; this way, you spend only what you earn. And if you don’t earn enough…

3. Find new part-time work. Walk dogs, house sit, tutor, bartend, freelance graphic design… there are a million part-time jobs that can produce extra side income for you. The more income you have coming in, the faster you can tackle any outstanding college credit card debts.

4. Ask friends or family for help. A no-interest loan from a parent can be a great way to pay off high interest credit cards that are eating you alive.

5. Adopt a true saver’s mindset. The wrong mindset got you into debt, and you’ll get back into credit card debt in the future — after college, that is — unless your mindset switches from debtor to wealth builder. I recommend you read The Richest Man in Babylon at your local bookstore. It’s a short book and can be read cover to cover in about 2-3 hours. This book, combined with a few good personal finance books, will revolutionize your thinking and hopefully re-motivate you to get out of debt and stay out of debt.

6. Innovate! If you have a great idea for a new web site or on-campus product, follow through. There’s that Chinese saying about adversity = opportunity… it’s not BS. Your college credit card debt pressure could be the motivation for a very profitable new project or important business idea.

Outlaw

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