How to Get Rid of College Debt

Most college students do not worry about the amount of debt they accumulate while in school. However, once they graduate the debt payments begin to add up. Student loans are not cleared during a bankruptcy, which means that the only way to get rid of college debt is to pay it off. Setting up a payment plan and putting extra money toward college debt will speed up the process of getting rid of college debt.

Instructions

1

List all of your student loan debts and other debts incurred while going to college. List credit card debt accumulated during college as well. Include the minimum payment amount and the total amount of the debt, as well as the interest rate on the debt.

2

Put your debts in order from the highest interest rate to the lowest. This is your debt payment plan. Paying off the highest interest rates first will save you money in interest payments. Some people do smallest amount to largest amount as well.

3

Write down a budget listing your monthly expenses and income. Make sure you are spending less than you earn, and then look for areas you can cut so you can put extra money toward your college debts. The more money you find the more quickly you can pay off your college debt.

4

Apply the extra money you find to the first debt on your list, while continuing to make minimum payments on all of your other debts. Continue to apply the extra money each month until the debt is paid off, then move on to the next debt on your list and pay the extra money you have toward it.