If there are traits in common that you can assign to college students, as a whole, financial security is not likely to be the first one to pop into mind. But what is the reason for that? Here, we’re going to look at some of the most common causes of financial crisis and how you can stop it from taking over your college experience.
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Misusing loan and grant money
Your student loan is there to help you not only afford college but also to cope with some of the costs of supporting yourself while you go. But to many, getting that surplus of funding is a new experience and it’s easy to misuse it to such a degree that it all disappears. Budgeting your student loan as soon as you receive it is crucial. Figure out how much your household costs are and how you need to split your money, as well as whether you may need to supplement it with additional income.
The debt spiral
Many students start using overdrafts and credit cards to help see them through college. Not enough of them understand how credit works and are surprised when paying it all back is much harder than spending it. Prevent your debt from taking over your life. Learn to negotiate with creditors ahead of time if you realize you can’t afford payments. See if there are any debt consolidation services that can help you keep a cap on credit and spread your payments out. The sooner you tackle debt, the easier it is to maneuver it into a more manageable position.
From injuries to sudden damage to your car, big costs can rock even the most organized budget to its core. But if it’s not your fault, you shouldn’t be the one paying in the first place. Finding success in your injury claim can help you cover all the costs, not just your hospital bills but any income you might miss and perhaps even some damages on top of it. Standing up for yourself after damages that aren’t your fault is crucial to your financial wellbeing.
The affordability of what you need
Despite the relatively low financial stability of most of us, college students do not get any breaks as a market. Just look at the prices of your textbooks. However, you can avoid being overcharged into debt with sites that help re-use and resell textbooks from other students. Avoid buying new when possible and stick to pre-owned or, in the case of tech, refurbished. If it works just as well, does it matter who owned it in the past? Of course, use this advice within reason. Pre-owned bedsheets and underwear are excluded for obvious reasons, for instance.
Some of the issues mentioned above come down to bad money habits, but there are plenty of dangers from outside your control that can make it harder to manage your money. Putting the right protections in place and knowing what to do in the event of new costs can help you stay in control even when dealing with issues outside it. Fend of financial crisis with these important tips.