Student Debt Solutions

Written by Mark Sanfilippo
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Some experts claim that student debt has grown at an exponential pace in the last decade. This is in part due to the rapidly increasing tuition costs across the country. It is also due to the increased credit card usage among college students. This is a trend that is affecting a great number of students and mounting an almost impossible amount of debt on many.

Credit cards in particular are dangerous forms of debt because they are so easy to use. Some credit card companies are specifically targeting college campuses and reducing the financial requirements for their services so that most college students can have access to one of their cards. With the increase in the costs of tuition and the general increase in the costs of housing, many students are forced to use their credit cards to cover their expenses.

Credit cards, unlike student loans, usually have an exceptionally high interest rate. On top of that, these cards usually carry stiff charges and penalties and almost no flexibility regarding payback schedules. For those who happen to have both student loan debt and credit card debt--which is by no means an uncommon situation--it can be difficult at best to know where to start.

Pay off the Highest Interest Debt First

The primary key to solving your debt problems is to pay off the loans that carry the highest interest rates first. This is more than likely going to be your credit card debt. Luckily, through consolidation and flexible repayment schedules, you can adjust your student loan payments so that you can dedicate more of your monthly income to reducing those credit cards debts as fast as possible and still not go into default on your student loans.

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