The parent should instill proper financial management skills in the child and it is up to the latter to implement it while they are away for college.
Dallas, TX (PRWEB) September 26, 2013
As if student loans are not enough, National Debt Relief reveals that there are actually two debt problems that college students usually face. The leading debt settlement company released an article on their website last September 22, entitled “2 Debt Problems Your Child Have To Deal With In College.”
The article begins by revealing how it is not impossible to keep students from debt. Even if they are burdened with student loans, they have all the capabilities to make sure that it will not be as bad as it can be. Of course, the article narrates, that it all depends on how both parent and child will deal with the debt problems. The parent should instill proper financial management skills in the child and it is up to the latter to implement it while they are away for college.
National Debt Relief discusses the first debt that college students obviously have to deal with - student debts. Although this is a debt that is billed six months after the student graduates, the article provides certain tips that will keep the negative effects of this debt to a minimum.
There are 4 things that the student should be taught to do:
1. Monitor the different student loans. Students usually end up with more than one loan to finance the whole 4 years of their college education. Sometimes, the article states, it is a mix between federal and private student loans. It is highly encouraged that the borrower take careful note of what they owe.
2. Make the payment plan early. As each loan is made, the article suggests that students create a payment plan already. The whole idea is to help them understand how they should spend their current money to make the payment plan feasible once it is implemented.
3. Find out student debt relief options. It is also important that students get an early start in knowing what debt solutions they are allowed to look into. There are certain programs that can assist graduates in paying down what they owe.
4. Work on the interest as soon as possible. The article reveals that students are allowed to make early contributions towards their interest - if they do it while they are still in school.
After discussing student loans, National Debt Relief proceeds to the next debt that students are burdened with - credit card debt. Usually, parents give credit cards to their kids to help them with any emergency financial needs. The article suggests that parents must teach their kids how to use these cards. At the same time, the parents and students are encouraged to implement the following suggestions:
1. Select the right card. There are specific credit cards for college students.
2. Know the billing cycle. Parents are urged to teach their kids to understand how the billing cycle works. That way, the student understands when they should pay their balance without accruing interest on their debt.
3. Impose strict rules when the card must be used. Students are encouraged to pay for most purchases in cash.
4. Refrain from using the card on unnecessary purchases. This is meant to teach students smart spending habits.
To read the whole article, visit the website of National Debt Relief or click on this link: http://www.nationaldebtrelief.com/2-debt-problems-child-deal-college/.