As a recent graduate, you are likely trying to manage your money and debt as you leave your college days behind and go into your new career. When you plan your budget including your new income and expenses, you will need to account for any credit card debt you carry.
No matter the reason you accumulated credit card debt during college, it is imperative that you make a plan to tackle that debt post-grad through repayment or filing for bankruptcy.
1. Review your credit card debt
Although this might feel extremely uncomfortable and disheartening, reviewing how much debt you owe helps you understand the reality of your situation. With an accurate assessment in mind, you will become more focused on your debt elimination goal. For each credit card, record your outstanding balance, your monthly minimum payments and the interest. This will give you a baseline idea of your debt.
2. Create or tighten your budget
A budget is beneficial because it may reveal to you some expensive spending habits you did not even know you had. Pay attention to every penny that leaves and enters your bank account. This will make you more aware of where your money is going and prevent spending unnecessarily when you have a goal in mind. You will pay less interest in the long run if you pay more on your principal now.
3. Formulate a repayment strategy
A few options exist for you to consider when it comes to repayment. You can look into transferring your balance to a new credit card with less interest, start paying more than the minimum monthly, negotiating with the credit card company to lower your interest rates, and paying on time to avoid incurring more fees.
Overall, your credit card debt post-college is not the insurmountable end, as you have many options on how to get your finances back on track.