Got College Debt? These Tips May Help

Just about every American student leaves campus with a load of debt. Some could be low-interest government-backed loans, some could be private loans that carry a high-interest rate, and some could even be credit card debt that carries even higher rates plus all kinds of fees and charges. Of course, that is not the best to face a new life. Former students should try anything legal to get out from under that debt. Here are a few tips.

TIP ONE: Repayment Schemes

Of course you want to get your debt eliminated as soon as possible. One strategy involves focusing on your highest interest loan first. Pay minimums on all your other loans and use the extra cash to overpay on your most expensive loan. When you get that one paid off, focus on the next. You will get a sense of finally getting somewhere when you see those high interest loans disappear. Elimination of one debt can mean a lot financially and mentally. Dragging out all your loans without seeing much change is debilitating.

TIP TWO: Zero-Balance Transfer Credit Cards

You have to be careful when you do this. Shop around for a credit card that is offering a zero-balance transfer offer. These cards will allow you to pull the debt from all your other cards carrying the debt at 13% or more. Suddenly your debt is sitting on another account interest free. The period you are allowed to carry this debt interest free varies from six to eighteen months so shop around to find the best for your financial situation.

You MUST do these two things to be successful in this venture:

DO NOT USE THE CARD FOR ANY NEW PURCHASES. Why? Any new purchases will incur the usual percentage rate on the card. Any payments made on the card will go toward the transfer amount. The new purchase will sit on the sidelines collecting interest. The $20 sweater you buy could end up costing you $40 by the time the balance transfer is paid off.

PAY OFF THE DEBT IN THE TIME ALLOTTED. If you do not pay the transfer debt in the allotted time, it will then start incurring the usual rate. Sometimes the debt is put at the highest interest rate because you did not meet your commitment.

TIP THREE: Education-Friendly Employers

Since you may be job searching, make it a point to check out any educational benefits the company may offer. Some employers will pay a percentage of your loans. Some government jobs can be especially generous with this benefit.

TIP FOUR: You Do Not Need That

Is that $4 latte really necessary? How about trimming a little extravagance in your lifestyle? The price of three lattes a week applied to a debt can mean a lot. It adds up quickly. Pennies in a jar will too. Look for little ways to cut costs. You really will be surprised without sacrificing much.

TIP FIVE: Free-Lance or Part-Time Work

If you are a writer, there are plenty of opportunities for writing web content. The pay can be quite generous and you can end up writing things you really care about. Check out places such oDesk or Elance. They provide many opportunities and you set your own rates and hours. Do you have a hobby? Turn it into money. With the internet opportunities abound. Fire up the search engine and look for opportunities.

Simple Things Mean a Lot

These tips may seem simple and obvious. However, some folks just do not think as they busy themselves making money for others. They do not think about venues for themselves. Start looking for the little ways to whittle down the college debt.

By: Jessica M Peterson

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Jessica Peterson is a Holiday Loans Consultant. For more information about Bad Credit Christmas Loans and others please visit www.yourloanservices.com