College is an exciting time for many people, but it can also lead to an excessive amount of debt. Many teens and young adults don’t fully understand the implications of taking on debt. They’re promised a strong financial future with a job in their field, so even though they don’t have it yet, it seems like everything will work out later on.
Placing student book costs on credit cards and using credit during the college years makes sense for some people, but later on, you could end up paying those debts back over and over again. Some credit cards have interest rates at 25 percent or higher, making it very easy to end up in over your head. Missed payments add up, and fees can make catching up to the debt near impossible. Add to that a situation where a student can’t find employment, and the one-time healthy and planned debt becomes a major problem.
What can you do to get out of credit card debt?
There are a few things you can do if you’re caught up in credit card debt. First, you can try to pay it back by paying more on the monthly payment than you owe. Start with the lowest debt and begin to pay each off. Do your best not to miss payments. You can also call the creditor to talk about options for reducing your debt if you cannot make a payment on time.
If paying off your debts isn’t in the cards, then you may want to consider bankruptcy. Since credit card debt is unsecured, you can have it discharged in Chapter 7 bankruptcy in most cases. Once you qualify, your qualifying assets are liquidated. After that, any remaining debts are dismissed. Certain debts, like school loans and tax debts, may not be dismissed this way.
Credit debt doesn’t have to hold you back. Take advantage of the options that are there to help you get out of debt today.