Good debt tips for students

Trying to work out whether a loan will land you in good debt can be tricky. Follow these tips to avoid the bad debt trap.

  • If you’re going to university, then find out how much student loan you’re entitled to. This is good debt as it has the lowest interest rate of any loan.
  • When getting a loan or credit card, always check the interest rate or APR. If it’s exceptionally high, you may end up in bad debt.
  • If you know that you cannot make your debt repayments, get professional advice as soon as you need it. There is support out there to help you sort out debts.
  • Don’t fall into the ‘minimum’ trap. If you’re paying off the minimum interest on your credit card bill, it will take years to pay off the balance and once you do, you will have paid off a lot more than you borrowed.

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Posted by on Mar 12 2010. Filed under Debt Management. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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