How to Eliminate Student Credit Card Debt

Are you a college student stuck in credit card debt? If yes, know that you are not alone in this situation. Unfortunately, many young people are confronted with the same problem as a result of uncontrolled spending and poor management of their student credit cards.

However, it is comforting to know that everything isn’t hopeless. There are positive steps that you can do to get yourself out of bad debt and start fresh again. What are these steps? Here is a guide to help you:

Check your account. Carefully examine your credit card statements to make sure that there are no errors or unauthorized charges in your bill. If you find errors, call up your issuer right away and dispute the wrong charges. On the other hand, if all charges are correct, be prepared to work on a repayment plan to cut down your debts one step at a time.

Avoid new charges. Since you will need to work of debt repayment, you should avoid incurring new charges which can add a heavier burden to you. This is especially true if you own more than one student credit card. If you have been used to shopping with your credit card, then it will take self-discipline and motivation to keep yourself from spending.

Pay off your highest rate card first. If you own more than one student credit card, check which one has the highest rate of interest and focus on paying it off first. If possible, pay off your charges on this account in full. This way, you can stop your debts from further accumulating due to the high rate. As soon as you manage to pay off your debts on your highest rate credit card, you can work on paying off your debts in your other credit cards.

Consolidate with a balance transfer card. Another strategy is to apply for a balance transfer credit card with zero interest rate so you can pay off your debts without worrying about the rate. However, choose a balance transfer credit card wisely. Know when the zero interest rate is bound to end and be sure that you can complete your payments while the zero APR still applies. Also, watch out for credit cards that impose expensive balance transfer fees or credit cards with no cap on the balance transfer fees.

About the Author

Samantha Wilson is a consultant for credit cards for students. For years she has written student credit card articles that would help build student credit.
Copyright 2011

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