How does a college student get out of credit card debt?

A college student can begin to get out of credit card debt by reviewing how much they owe and then develop a strategy to pay off that debt. The average credit card balance for college students in 2018 was $1,183, according to a survey by Sallie Mae. A study conducted by the student finance firm Nellie May found that many students use their cards with no concerns as to how the bill be paid.

With credit card debt mounting on top of crushing student loan debt, the first thing a college student should do is write down everything related to your credit card debt: current balance, interest rate, monthly payments, etc. Once you do that, the sobering figures will likely motivate you to try and eliminate the debt.

Here’s how a college student can get out of credit card debt:

1. Record all of your credit card debt. Include all information related to your debt, with an emphasis on your due date and current interest rate.
2. Come up with a plan. With all of your information in hand, decide how much you can afford to pay and when you can pay it. More importantly, you’ll need to determine where the money is going to come from. A successful plan may take months, or even years, to get yourself back on solid financial footing. But it will take even longer, if you keep putting it off.
3. Create a budget. An essential part of any payback plan. Take a hard look at the little expenses that don’t seem significant at the time you’re paying them. Those are the ones that tend to add up the quickest. The sooner you’re aware of where every penny comes and goes, the more effective your budget will be.
4. Consider a balance transfer card. You’ll get a break on the interest for several months, plus, if you’re juggling multiple debts, consolidating them into one payment will allow you to make just a single payment toward your outstanding debts.
5. Make timely payments. The Sallie Mae study revealed that 57% of college students have less than $500 balance on their cards, while 3% carry a balance greater than $5,000 in 2018. Late payments can turn your payback plan upside down. Every time you incur a late payment fee or a penalty interest rate, that’s money that could have been spent paying down your debt.

Your college years are an ideal time to establish credit and set up your financial future when your school days are over. Getting into credit card debt in college does the exact opposite. If you’re facing insurmountable credit card debt as a college student, there’s still time to get your financial house in order by the time you graduate – if you’re willing and determined to develop a plan and stick to it.