Credit Card Debt: Key Advice for College Students

Here's my story, how you'll learn from my mistakes and find out how to manage your university student Mastercard debt.

My Mastercard debt as a university student

I was maybe 18 or 19 years old at the time. At the time, living away from home and working a part-time job in college earned $116 every two weeks. As a global student, this was the only employment I was permitted to have. My mother, thankfully, helped me out by paying my tuition and rent. My obligations were still paying my bills, telephone bills, buying my groceries, and taking care of my other personal needs. So I paid my telephone bill (~$30) monthly and purchased enough Coca-cola and Ramen noodles (~$40) to survive every fortnight. (I'm not sure how I survived on such a bad diet.) I found myself calling home to inform my mother about the "basically free" money I used to be being offered at college. Her response? "What could you most likely need in your life that you simply got to buy on credit?" She had some extent. Well, the next fair came over with another booth and another agent. Again I used to be lured over by the freebies and supposedly free money. I explained that my mother didn't think it had been a fair idea. They were like, 'But your mother has never got to know. We'll send your statement to your on-campus address.' And thereupon, I immediately signed up and was approved for a credit line of $2,000.

Blowing my entire Mastercard balance

For the lifetime of me, I cannot tell you what I spent that $2,000 on or how I spent it. I can, however, tell you I maxed out that card very quickly. Maybe that's why the typical MasterCard debt for college kids is so high. When I received my first statement a couple of weeks later, I used to be perplexed. 24.99% interest on what? I had sleepless nights brooding about my newly acquired debt and, therefore, the indisputable fact that I did not have a clue about the way to get out of MasterCard debt. I ended up having to inform my mother what I had done (before she found out). Of course, I received the proper scolding. Then I used my little savings (about $75 lol) and, as a result, the money I used to earn at my student job to pay off the debt and the horrendous interest it had accrued. Even though the $2,000 may appear insignificant now, thinking about it every day gave me a great deal of worry, and it took me several months to pay it off, but I learned a valuable lesson about managing MasterCard debt. At the top of it all, I ended up returning the $2,000 plus 24.99% compounded interest, which was far more than anything I purchased on the MasterCard was worth. Stupid. Moral of this story: university student MasterCard debt sucks if you do not have the means to pay it off in its entirety monthly.

My tips for school students with MasterCard debt

Whether you went on a shopping spree, purchased expensive car repairs, or needed new textbooks, you continue to have university student Mastercard debt. You'll get to find out how to manage MasterCard debt, come up with an idea to pay it off, and not fall under an equivalent trap in the future.

No.1 Forgive yourself for your mistakes.

We've all made mistakes, and perhaps running up a credit bill is one among yours. Or perhaps you did not plan and had to believe credit for a few critical circumstances in your life. That's ok. You've come to understand it. Now it is time to form some changes and find out how to manage MasterCard debt.

No.2 Create an idea to pay off your MasterCard debt ASAP

Regardless of your income, you would like a budget to plan where your money will go monthly. This could include what proportion to pay towards your debt. There are different strategies that will work, counting on your situation. for instance, and the debt snowball method may be a great approach to paying off multiple MasterCard balances. But if you have one card as I did, specialize in paying down the maximum amount you'll monthly until you're trapped. As a university student with limited earnings, this might seem overwhelming or impossible. But that's not true. You'll reach your goal of ridding yourself of this Mastercard debt.

No.3 Build your emergency fund of $1,000

Many individuals use credit cards to hide unexpected expenses like repairs or medical bills. Start saving money in an emergency fund rather than counting on credit to hide these costs. This may help keep you from accumulating debt after every significant event that happens in your life. Your ultimate end goal should never be to carry a balance. You may want to possess a fully-funded emergency fund for three to six months of living expenses. Except, for the time being, it's only interested in saving $1,000. Break it down into smaller goals if necessary. Getting a part-time job or experimenting with passive income options for college students can help you save money.

No.4 Live below your means.

An essential tread on the way to manage Mastercard debt is learning to measure below your means. Living below your means will prevent you from racking up university student Mastercard debt. The average MasterCard debt for school students is roughly $1,000; however, the typical MasterCard debt for the American household is over $5,000! Bad habits are hard to interrupt, so if you get ahold of your finances now, it'll prevent future financial mishaps.

No.5 Curb your spending

Another crucial tread on the way to manage Mastercard debt is to curb your spending. It's too easy to succeed in that MasterCard for impulse purchases, and you'll find yourself paying far more than the value of that new item you purchased than you thought. Let's say you spend $20 every week on coffee; that equals $1,040 during a year! You'll pay off your MasterCard thereupon money. Not eating out as often, making grocery lists, and purchasing used products rather than new ones can all help you save money and get out of debt.

The bottom line when it involves university student MasterCard debt

When it involves your finances, ignorance isn't bliss. It comes back to bite you within the behind eventually. Educate yourself about all of your current debt, know the interest rates, and learn how to manage MasterCard debt. Give yourself peace of mind knowing you've got an idea to pay off your debt over time, and eventually, vow you're through with MasterCard debt once and for all.

Leave a Reply