Hypo Venture Capital Headlines: Knowing often helps students to avoid student loan debt – Some tips

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Knowing often helps students to avoid student loan debt – Some tips

There are very few college students who lead a disciplined financial life in the US and this is the reason for the spurring student loan debt level, both in the form of installment loans and revolving credit card debt. Not many of them still comprehend the difference between needs and wants and therefore they spend their allowances and income on things that they can easily do without. According to a research by the Administrative Office of the US Courts, a large number of personal bankruptcies have been filed by those who don’t even know the basics of personal finance management. The students become gradually dependent on the non profit debt consolidation programs companies and end up wasting their dollars on something that they could possibly do on their own. Have a look at some personal finance tips for the students.

1. Take credit cards only when you need them:
Owning credit cards isn’t something that you can brag about in your next friendly gathering. Credit cards are used during a necessity and not during every little purchase that you make. You should only go for a credit card when you feel that you really want it. Credit cards should only be taken when you have the affordability to repay the amount.


2. Read the credit card agreement:
Before you sign the papers with a credit card company, make sure you’ve read all the terms and conditions of the card so that you don’t take wrong decisions due to ignorance. Only when the terms of the credit card seem to e affordable, you should accept it as you can be harassed by the creditors if you don’t pay the installments on time.


3. Shop around before taking loans:
You must make a comprehensive market research of all the lenders and then choose the student loans and the credit cards. You must be aware of the fact that private student loans carry higher rates than their federal counterparts and therefore, reading all the conditions of the student loans is a necessity. Nothing can be worse if you have to fall back on the monthly credit card payments for paying the student loan on time or the other way round.


4. Manage your personal finances:
As students, you have to be very careful about your credit score as the employers will check your score before hiring you with their organization. If you show them a poor credit score, it is most likely that they may accept someone else in your place. Therefore, follow a budget and prioritize your payments so as to diminish the effect on your score.Knowing often empowers a student and assists him in taking the right decisions about his finances. You should initially educate yourself on all the pros and cons of taking out student loans and falling in credit card debt and then take the plunge. Don’t refrain from taking help of the non-profit debt consolidation firms if you can’t tackle your debts on your own