OntiverosCaston772

Can getting into debt be avoided after college.

You can definitely avoid debt after college. There are a few things you may have to do in order to avoid the big D (debt).

Do not give into the temptation of credit cards. I know when I was a student banks were offering me multiple credit cards. It was very tempting to apply and very easy to get approved. Try limiting yourself to one credit card. Keep the balance at around 30% of your credit limit. For example, your credit card limit is $1,000.00, your balance should never go over $300.00. Always pay your bill before the due date. Some credit card companies will increase the interest rate if your late and add on late fees.

Avoid high interest loans Sometimes loans are hard to get when you are a student or just graduating college. The only option for new graduates maybe high interest loans. An example of high interest loans are "cash advances". You can borrow the money off your credit card or through a financial institution. �Some institutions may charge you the maximum usury rate that is allowed in your state. This rate can be as high as 24%. Instead of having a monthly payment of $100 for a low interest loan, your payment could be closer to $500 for a high interest loan.