More than two-thirds of graduating students will have student loan debt. A decade ago, only half of all students had debt. With average student loans totaling almost $20,000, this debt can largely be contributed to the exorbitant rising cost of college. But, while student loans are sometimes necessary evils, some students are also graduating with at least $2,500 in credit card debt.
Basic Debt Advice - Know What Debt Is
Debt is simply what is owed to someone else, usually an asset and typically to a creditor or a bank. Student loan debt is owed to whichever creditor you have chosen to open your loans with. And, if you have credit card debt, that amount is owed to the credit card company your account is with.
Student Loan Debt
Student loan debt is hard to get around, as many students cannot afford to attend college without taking out some student loans, but it's important to try and save money before heading off to your new school. Check out typical college savings plans.
Take into consideration your interest rates on your loans, as this will add to your total sum in the long run. Given the amount of students who have to take out student loans in recent years, the stigma for having student loan debt is fairly low nowadays. Learn about student loans and how to consolidate them if you're having trouble making your monthly payments.
Credit Card Debt
While student loan debt may be hard to maneuver around, credit card debt is very easy to prevent in advance. Check out how to maintain your credit card without ending up in debt.
Credit card debt accrues when you do not pay off your balance every month and grows based on your interest rate. If you use your credit card for purchases that are not emergencies--say that swanky jacket you've been eyeing or a slice of pizza--it can be really easy to have a large balance. And your credit card company makes it difficult to spend less when they keep raising your credit limit.
If you haven't paid off your credit card each month and you now owe more than you can afford, check out more debt advice in the rest of this section.
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