Getting into debt when you are a student is very easy. This is the first time that you are asked to manage your personal finances all by yourself. Since you lack experience, in all probability, you are going to fail, at least in the beginning. While this is expected, you can follow a few tips so as to make sure that at least you are not going to get into excessive debt.
How to avoid getting into excessive debt when you are a student
1. Get a job
That may seem obvious, but it really isn’t. Even if you do not encounter financial problems, it is still necessary to get a job to be financially independent. You never know how things turn out, and it is always better to be safe than sorry. Having a job, even a part time one, can provide you with financial security.
2. Avoid student loans
Even if you manage to find the best student loan, still, it is going to take years before you are able to pay it off. This is going to be a huge burden on your shoulders that you do not really need, considering every other expense you have to think about. Therefore, unless there is really no other way to get financial help, forget all about student loans. If you have to borrow some money, it is best to borrow money from your parents, as they will be more lenient and understanding in such a case.
3. Use mainly cash
Credit cards may offer convenience in the short run, but they only offer headaches in the long run. Plastic gives the illusion that you can spend freely and pay later, which in turn leads to excessive spending. By using mainly cash whenever that is an option, you will manage to save money that can be put to better use, like paying for rent and bills.
4. Have your own lifestyle
Many students tend to get carried away by students who live the luxury lifestyle. They give in to the temptation of spending more than they can really afford, so as not to appear different and feel inferior. That is a sure recipe for disaster though, as it is going to lead to financial ruin before you even realize it. Difficult as it may seem at first, it is however necessary to find the emotional strength to have your own lifestyle. Go out whenever you can, order the meals you can afford, make the purchases that you really need and not just want. If you are afraid that the company of your friends will prevent you from achieving your goal, then it will be best to keep a safe distance from them.
Avoid getting into excessive debt when you are a student may be difficult, but not impossible. The above outlined tips can guide you towards the right direction. Of course, you can make some adjustments to make things easier for you, if necessary.