Student Credit Card Debt Solutions

Over 20 percent of college students graduate with more than $7,000 in credit card debt, according to MSNBC. Students who have credit cards should take steps both while they are in school and after they graduate to pay off their debt and take control of their finances.

Stop Using Credit

Students who are accustomed to pulling out their credit cards for everything from a morning coffee to textbooks need to put away their credit cards. Getting out of debt will never work if students charge more to their cards than they pay when the bill comes. Students should use cash or debit cards instead of credit to avoid building any more debt.

Campus Job

Students who are still in school can turn to campus jobs both to help provide spending money and to be able to make more than the minimum payment on credit card bills. Many campus departments hire students as laboratory assistants, graders for professors, supervisors for buildings after hours and workers in the dining halls. For example, just $30 of income per week could provide students with $15 per week of spending money and an extra $60 per month for credit card bills.

Budget Extra Payments

Credit card debt can take over a decade to pay off when making only the minimum payment every month. According to MSNBC, 22 percent of students just pay the minimum on credit card bills, whereas only 17 percent pay the bill in full. Students and recent graduates should make a budget that allocates income toward the most important expenses first. Extra payments on credit cards should be a higher priority than eating out or buying new movies or music.

Lower Student Loan Payments

Graduates who have both credit card debt and student loan debt should try to pay off the credit cards first. This is because credit cards generally have much higher interest rates than student loans, especially those issued by the federal government. Students can apply for the income-based repayment plan on student loans to lower those payments. This frees up money to make extra payments on credit card debt and pay it off quickly.