10 steps to getting out of debt

There’s no better time than the present to start developing healthy financial habits. If you’re a student and in debt, it’s a good idea do everything you can to try and pay off your debt little by little now, rather than waiting until after you graduate. Not only will being debt -free be a hugely liberating experience, but it will also give you a set of financial tools and knowledge that can really help you manage your money properly once you start your career and earn a salary.

So how do you start working your way out of debt if you’re a student? Here are 10 ways to start:

  1. Confront your debt

Do you know exactly how much debt you’re in? Investigate exactly how much you owe and to whom, so you know the precise numbers you’re dealing with.

  • Decide to be debt-free

It might sound silly, but the simple act of deciding to be debt-free is very important. It means making a commitment to do whatever it takes to get yourself out of debt.

  • Change your behaviour

Are you always borrowing money from your parents or friends to buy things you can’t afford yourself? Decide to stop calling in favours and to rather live within your means.

  • Draw up a budget

Work out a realistic but conservative budget and stick to it. Make sure you refer to it regularly, for example, every week or every month.

  • Avoid credit

Credit cards can encourage you to spend money that you don’t have and so will struggle to pay back. Without a regular income to pay them off, these are likely to only make your debt worse.

  • Watch your entertainment spend

Beers after class, dinners with friends, the odd music concert: these things add up. While you’re on your debt-free mission, curb your spending on things that aren’t essential.

  • Keep tabs on your phone bill

Is your phone and data usage costing you a fortune? Make fewer calls, use Wi-Fi more often and change your plan if necessary.

  • Get a part-time job

Earning a little more will certainly help you deal with your debt. Every little bit helps: try and put a portion of everything you earn towards your debt.

  • Be an entrepreneur

What else can you do to earn some additional income? Can you make and sell jewellery, or offer your services as a tutor to bring in some extra money each month, for example?

  1. Ask for help

If you’re struggling with your debt, ask for help. Your university might have a financial help desk, or you could speak to a debt consultant at your bank to help you with a debt exit plan.

Getting into debt is always a risk, whether you’re a student or you’ve been working for years. Learning how to deal with money responsibly at a young age helps to make you more financially stable down the line. So start making these habits part of your life now – your future self will thank you.

Sources:

Money under 30: https://www.moneyunder30.com/get-out-of-debt-on-your-own

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