College life is all about getting through classes and coming out on top, which may mean buying expensive books, renting an apartment, buying a car, drinking lots of coffee and ordering late-night meals while studying. Most college students work while attending college, but their pay isn’t often good enough to pay for all those expenses – that’s why many students will take advantage of all their credit card offers.
Students can rack up their credit card debt quickly if they aren’t careful. By the time a student graduates, they may be paying off both student loans and tons of credit card debt. So how can a recent graduate ease their debt troubles? Here’s what you should know:
Cutting back on your expenses
Food, clothes, gas and rent is often the only thing people put on their credit cards, but that can lead to a slippery slope of putting just about anything on a credit card. Lots of credit card debt is caused by people purchasing things that aren’t necessary (movies, games or eating out regularly).
You may need to consider budgeting your expenses if you have tons of debt. You may consider taking a moment to consider what exactly you need in a month and using what’s left to slowly pay off your bills.
Filing for bankruptcy
Another option graduates have is bankruptcy. Bankruptcy won’t wipe away your student loan debt, but it could help ease your credit card debt. Many recent grads may consider a Chapter 7 bankruptcy because of their lack of assets, but they also have the option of Chapter 13 bankruptcy if they have enough regular income. Either can make it easier to pay off those student loans and start planning for the future.
If you’re looking to wipe out your debt in one clean sweep by filing for bankruptcy, you may need to know more about your legal options.