Student finance: easy ways to deal with your debts

A lot of students in the country are already given credit by banks and other financial institutions.

10:04 07 May 2013

A lot of students do not know how to properly handle their finances.

In the end, they find themselves buried in huge debt. If you’re one of them, here’s how you can easily deal with the situation:

• Know how much you owe. First thing that you need to know is how much money you owe. Create a list of the institutions or people that you owe money to. Prioritize those debts that come with the highest interest rate.

Work on a plan on how to pay them all off in as little time as possible. This may mean getting a job and cutting unnecessary expenses.

• Budget. Sit down and list all your weekly expenses. Separate the “needs” from “wants.” Until you fully pay your debt, ensure that you only buy the things that you absolutely need.

This may mean little sacrifices like limiting the number of times you eat in a fancy restaurant or buying shoes every now and then.

• Set your goal. It’s very important that you know exactly what you’re working for so you’ll get there in no time. Set a deadline as to when you can pay all your debts. Then, work on an action plan on how you can make it happen.