For many Students Debt is a simple fact of life, studying day in and day out can leave no time to get a job.
There are several steps that you can take to manage debt and stop the stress.
The first step is avoidance if possible;
-Don't overspend generally
-Be very careful with credit cards, many people take out credit cards and go on spending sprees which will eventually need to be paid for. If you do feel as though you need a credit card then choose one with 0% interest for a limited time. Ensure that if you do take out a 0% interest card that you opt for a better rate once your offer expires.
-Stay completely away from store cards as the interest rate on them is colossial.
-It is advisable to avoid consolidating all of your debt's into a single loan as often these are offered as quick-fix options where you will end up paying more interest in the end.
Getting out of debt;
-Pay off your debts before you save money, particularly when the interest rates are low.
-Stay calm and work out exactly what you owe, you will need to tackle the problem as soon as you can to incur minimum stress.
-Tell a friend about your debt so you don't feel completely alone.
-When tackling debt you need to work out a plan of action which involves prioritising the higher interest rates that need to be paid off first
-Switch your credit cards to a lower rate of interest
Getting Creditors Off of your case
If you can't make a payment that you owe, rather then run from the problem or ignoring letters, confront the problem headon, here is our guide;
-Respond to Creditors letters and phone calls as soon as you recieve them, you may respond by either writing to them or phoning them up, the situation is typically resolved faster over the phone but it is always handy to have all communications in writing.
-Ensure that you stay calm and do not get angry with them. You want them to be on your side so that you can arrange a later pay date.
-If you feel as though you are being harassed by an individual take theirn name and report them
-Write down the name of everyone you have spoken with and what has been said to you by that person as well as the date.
-Don't just tell the creditor what they want to hear when making an offer, say what you can truthfully, realistically afford. Also make your offer as brief and consice as possible.
Remember not to stress out over creditors, make sure that you stay calm and write down all conversations leaving a papertrail. If you get into trouble and recieve official court papers then make note of the summons date, contact a soilicitor immediately and it is recommended that you negotiate a settlement outside of court.
Remember you are not alone you can call free advise services to help you manage your debt
National Debtline - 0808 808 4000
Consumer Credit Counselling Service- 0800 1381 111
National Association of Citizens advice Bereaux - 0207 833 2181