Dont Carry Credit Card Debt Into Adult Life
It's a heady feeling, going to college and being offered credit cards left and right. But all that easy credit really will come due someday, and the more debt you build up, the harder it will be to pay off. It's not something you like to think about when it's time for you and your friends to go out on a Saturday night, but sooner or later you'll have to face the debt you ran up in college. There are numerous benefits to getting your credit card situation sorted out before you graduate. Here are a few of them.
1. You avoid the downward spiral of debt. This is one of those cases where an ounce of prevention (paying down your debts) is worth a pound of cure (all the interest you'll have to pay later). Borrowing to cover debt is never a good idea because you're only making it harder on yourself in the long run. Tackle debt problems head on while they're still manageable.
2. You'll have a better credit score. Your credit score is a distillation of your bill paying habits and tendencies all combined into one number. The higher the number, the more likely you are to pay your debts. This number will figure heavily into such things as car financing and getting a mortgage. A higher credit score will result in lower interest rates for you, which can save thousands of dollars over a lifetime.
3. You'll sleep better at night. When debts pile up, so do mental stresses that can affect every area of your life, including major decisions such as whether to get married or have a child. It is very hard to enjoy the everyday routines like getting coffee on the way to work if you know you'll be paying for that cup of coffee for a ten years. Paying down your debt and watching it disappear is one of the greatest feelings because it frees you up to do so much. You'll have an easier time getting a loan for a car, home, or to start a business, and you won't constantly be worried that your credit card's going to be rejected every time you use it.
Don't get into the mindset of thinking that once you have that great job that you've spent four years preparing for, that you'll pay your debts then. Sure, you'll be making way more than you were as a student working in the library. But expenses have a way of keeping up with income, and if anything, paying for continually mounting debts will get harder, not easier with time.
1. You avoid the downward spiral of debt. This is one of those cases where an ounce of prevention (paying down your debts) is worth a pound of cure (all the interest you'll have to pay later). Borrowing to cover debt is never a good idea because you're only making it harder on yourself in the long run. Tackle debt problems head on while they're still manageable.
2. You'll have a better credit score. Your credit score is a distillation of your bill paying habits and tendencies all combined into one number. The higher the number, the more likely you are to pay your debts. This number will figure heavily into such things as car financing and getting a mortgage. A higher credit score will result in lower interest rates for you, which can save thousands of dollars over a lifetime.
3. You'll sleep better at night. When debts pile up, so do mental stresses that can affect every area of your life, including major decisions such as whether to get married or have a child. It is very hard to enjoy the everyday routines like getting coffee on the way to work if you know you'll be paying for that cup of coffee for a ten years. Paying down your debt and watching it disappear is one of the greatest feelings because it frees you up to do so much. You'll have an easier time getting a loan for a car, home, or to start a business, and you won't constantly be worried that your credit card's going to be rejected every time you use it.
Don't get into the mindset of thinking that once you have that great job that you've spent four years preparing for, that you'll pay your debts then. Sure, you'll be making way more than you were as a student working in the library. But expenses have a way of keeping up with income, and if anything, paying for continually mounting debts will get harder, not easier with time.