Tackle your financial troubles head-on

It’s easy to feel buried under debt, especially when you’re a student, but being proactive is imperative.

06:58 12 December 2013

Dealing with a host of bills, utilities and loan payments can be a daunting task for anyone, but especially so for students who are just realising the extent of their debt. It is possible to successfully navigate finances, but there are a few tips that might help.

• Do not be afraid to search out free resources for financial education. If you find that you have overextended your credit and won’t be able to manage repayments don’t drag your feet.

There are often advisors who can help develop a repayment financial plan that you can manage. You can also contact the companies you owe and may be able to negotiate terms that will help. Remember that it never hurts to ask; if the answer is no you still will not be in a worse situation. Being proactive could save you from a financial landslide.

• Make a list of all your debts and bills, in addition to costs that you will have such as petrol and clothing. The first step to developing a decent financial plan is to get a handle on the amount of money you will need every month. Try not to let the numbers overwhelm you, there is often wiggle room if a budget is one correctly but it’s imperative to have the facts about your financial needs.

 

• Figure out your plan to eliminate some debts. There are many ways to do this, but when you need to free up cash quickly, the best bet is to find out which debts make you pay the most for a monthly cost but actually have a low balance. Pay off smaller balances that will give you a little respite for your monthly expenses.

 

• Do not forget to establish a savings account, even if you have to put coins in a jar until you can open an account.