Debt in college is common.  Whether it’s student loans, car payments, credit cards, managing and reducing debt is hard but possible.

Develop and follow a budget to avoid more debt. Track your spending for a month and determine where you can cut. Determine how much you can put aside to pay off existing debt. Pay above the minimum payment whenever possible, but don’t over extend yourself. To free up cash flow, pay more on a particular debt one month and scale back the next month. Remember, the more you pay towards a loan now, the more you’ll save later.

Are you able to consolidate multiple loans? Doing so may qualify you for a lower interest rate and reduces the number of individual payments. There are many opportunities available for students who have multiple student loans.

Meet with a local banker to discuss what your goals are with managing and reducing your debt. Your banker can help you develop a plan for you to meet your specific goals. They can give you insight into ways you can make your money work for you.

If you commit to properly managing your debt, you’ll be able to dig out of debt faster than you think and you’ll save a bundle in the long run by not having to pay interest rates.

Melissa Timmerman, Branch Manager
Citizens Bank-Dickeyville