Are you in college with a caviar taste and a chicken nugget budget? Are you interested in learning how to pay off debt now while having coins to save? Don’t fret.
It’s never easy being a student and having bills to pay. Now is the time to establish ourselves as players of the world before we get thrown to the outside. With enough strategy, we can throw debt into a way of the past.
We can do this. First, let’s go over the DO’s of paying off debt in college.
DO: Enroll in AutoPay
AutoPay gives you the ability to pay your bills indirectly. On the same day each month, the bill will deduct itself automatically from your checking account. The more on time we answer now, the easier it becomes for us to pay our liabilities later in life when they are sure to expand.
DO: Create a Budget
Now it’s time to buckle down. Think about your expenses. Where does the majority of your income go? Is there anything that you can minimize spending? When you hang out, what is the maximum amount of money you are willing to spend on the night? Do not sugarcoat. Create an outline of what you want to dedicate your income to in order of importance.
DO: Shop where they offer Student Discounts/Perks
You would be surprised at how many stores offer student discounts! If you do need things or are interested in treating yourself, shopping this way will help you save more money. A lot of companies understand that we use their services for school and as a thank you, they give us rebates. A couple of companies that provide them are:
- AMC Theaters
- The New York Times
- Sally’s Beauty
- Barnes and Nobles
If you are not interested in shopping directly in the stores, some apps give us discount codes to buy essentials online. One app being UNiDAYS. It is a FREE app that provides money off of online shopping.
Now into the DONTs.
DON’T: Pay the minimum amount on Credit Cards and Loans
This approach is a good rule of thumb. Every month, the debtor will suggest a minimum amount for us to pay every month. Credit follows us for the rest of our lives, so if we really want to impress the creditor, we will pay over the recommended amount. It will ensure that our credit score will grow.
DON’T: Pay the low-interest loans first
Always pay the HIGHEST interest loan off first. The high-interest rate loan will accumulate debt the fastest. Within a blink of an eye, your highest interest loan will nearly double. We definitely don’t want that. Knocking this problem out will allow you to focus on the smaller amounts you have to repay. This method will also flatter our creditors. We will illustrate how responsible and strategic we are.
DON’T: Pay full Price for Textbooks
Uh uh. Absolutely not.
Please don’t ever buy your textbooks full price. We are using these textbooks only for a couple of months. If you checked out your campus bookstore, you already know how STEEP those prices are. There are students who took the class before us, who are BEGGING someone to take those workbooks off their hands. It would be a better idea to rent or purchase used books. Apps like Chegg and Amazon student prime offer discounted workbooks. This will save you so much coin!
Saving money in college is not easy. Paying off debt in college is not easy. Let’s face it, we’re young, and money slips through our fingers faster than hair conditioner. Spending time to learn your expenses while saving, even small amounts, will help us keep our coins and keep us debt-free. Happy Semester and Happy Saving!
Zaria is a lover of truths and arts. She’s glowing and growing from Brooklyn, NY. If she is not writing and exploring museums around the city, she is watching re-runs of MTV Catfish