Students are no stranger to debts. To pay for your college or education at any stage, money must come from somewhere, and one of the ways you can pay your fees is by taking loans and with loans comes the ever-increasing interests. Studies have shown that students are more worried about their debt post-graduation than anything else. Thesis Rush experts prepared this article about types of students’ debts and how to clear them;
Student overdraft
In cases of a student overdraft, once you graduate, your student account converts to a graduate account. These accounts usually have 0% overdraft for three years, but as the years roll by, the overdraft amount tapers off slowly, thus encouraging you to pay gradually. It is important that you try your best to repay the amount in the initial years as the interest at that time is zero. This way, you repay exactly what you took. As the years roll on, the interest will pile up.
Credit cards
Some students pay their fees via credit cards. We highly recommend using credit cards only if you are 100% sure that you will be able to repay in time. If not, the interest rates will keep rising steadily until or unless you have an agreed repayment plan with your bank. Since credit cards have a short period without interest, we highly discourage using them.
Payday Loans
You must avoid payday loans like the plague. Payday loans are incredibly easy to get, but the interest rates are extremely high. Many companies specifically target students to hand them payday loans and then get the high rates of interest off them. Payday loan debts can easily spiral out of control. Our advice is to avoid them at all cost. If unfortunately, you are under payday loans, it is better to pay off with your credit card and get a repayment plan from your bank.
University-related debt
Keep an eye on the debts that your university might put you in apart from your tuition fees. Library charges, book loans, printing charges all accumulate to a significant amount. Such debts might even hold you back from attending your graduation or even getting hold of your degree. To avoid such debts, make sure that you clear dues right on the spot. The value of your book loan is significantly lesser as compared to the loan added on it. Pay the full amount on the spot and avoid these debts.
Bills and utilities
Bills and utilities if not paid on time tend to increase in value due to late payment fees. It is important that you keep an eye on your bills and utilities and see how where you can save some amount. Always make sure to pay your bills on time so that you do not occur additional charges.
Your friends and family
There might be cases where you have borrowed money from your friends and family. And after graduating, it is the time to pay them back. If you cannot pay them right out of the college, which is highly likely, it is better to sit and discuss with them on how you will repay them over the years. This way, your relationship will remain intact, and you will also be able to repay them over time.
We hope that by following the tips, you can get your debts cleared. It is important that you know all the types of debts that one can have and the consequences of it. You should also closely monitor your expenses so that you save more and is then able to clear off your debts on time.
