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Debt Management Tips for Recent College Graduates

April 16th, 2012 · blog, Guest Post

After graduating from college, many students are stuck dealing with loans and financial aid repayments. It can be tough for anyone to deal with this debt even with solid employment. Sitting down and tackling all of these bills can be difficult, but it is not impossible. With that in mind, there are various things any college graduate can do to lessen their burden and manage their debt. Sitting idle on the matter will do nothing but harm to a person’s finances.

Assessing The Debt
To start out with, an individual needs to look at their debts and figure out how much there is. This involves tallying up any student loans, credit card bills, and other debts. Some people will only owe a few thousand while others more commonly owe many thousands to multiple creditors. Either way, the first step is sitting down and taking a look at the numbers. From there, a person can create a plan to manage everything.

Timely Payments
The first thing a person must realize is that on-time monthly payments are a requirement above all else. No reason is sufficient enough to warrant missing a payment. Without a doubt, making the minimum payment is better than nothing. However, a person needs to focus on paying slightly more than that on all credit card or loan bills. The debts will otherwise continue to grow until they are not manageable any longer. Timely payments are more important than anything else.

Spreadsheet for Budget
Also, creating a budget is a great way to manage debt even more efficiently. A person should first plan out all of their essential costs, such as gas, food, rent/mortgage, and other bills. Debt-related bills deserve their own category and are the next important part of the budget. Undoubtedly, an individual needs to set apart these funds before hand to take care of these bills. Doing so ensures that a person will not overspend during the month and wind up without money to pay down their debts.

Tackling the Debt
It is recommended by many debt management experts that people should plan out their battle against debt. The best way is to start by tackling smaller debt to achieve a few victories. If you have a lot of credit cards, start tackling the lower balance first. Divert most of your repayment to that card each month and try to clear the debt as soon as possible. Since you are paying off the lowest owed amount, it won’t feel impossible when repaying the debt. Just keep tackling the smallest debt one after another and soon you’ll be debt free.

Of course, there are plenty of other things a post-graduate student can do to handle their debts. Taking advantage of any special payment plans for low incomes is always a good idea. Even having the payment due date changed to a different day each month can benefit some people. In any case, an individual needs to follow the basic principle that no late payments are allowed. Doing so can start a downhill path that leads to financial ruin.


This article was written by Matt H., a financial writer providing content for — Get money loans fast and easy now.

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2 responses so far ↓

  • 1 Deacon // May 30, 2012 at 10:46 am

    I think your point about putting all your debts down on paper (or spreadsheet) is huge! That is what my wife and I did and we were confronted with the harsh reality of our financial situation. But then we put a plan together to pay it off. 18 months after starting the plan we paid off all $52,000 in debt. If you are reading this, you need to put together plan and stick to it!

  • 2 Isabel // Jun 8, 2012 at 6:54 pm

    These are very good points.

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