Many college students, unfortunately and often unintentionally, rack up significant credit card debt during their time in school. Unlike student loans that don't need to be paid back until after you graduate, however, credit card bills are due each month, every month -- regardless of your ability to pay. So what can you do if you have credit card debt in college?
First and foremost, get a handle on the situation. How much is your balance? How much do you owe each month? Know how big your debt is so that you're not constantly worried about and fighting against some great unknown. If you're in college, you're interested in becoming an educated young adult -- so educate yourself on the realities of your debt situation as soon as possible.
Examine your spending patterns. Do you get your credit card debt because you went shopping, out to eat, and to a few concerts without realizing just how much money you were spending? Or did you have to put one large charge for car repairs on your car, knowing that if your car breaks down you can't make it to class on a regular basis? Look at your spending patterns to see just how, where, and why you spent the money that created the debt.
Be honest with yourself about what your patterns mean for the future. If you hate using your credit card but absolutely had to for that car repair, deal with the situation the best you can and move forward, promising to make your payments each month. But if you aren't clear on how exactly your balance got so big, you won't be able to know what patterns to break so that your balance doesn't get even bigger. What spending patterns can you change? What things can you cut out to prevent adding to your balance? What charges were "wants" and what were "needs" -- and how can you avoid putting "wants" on your card from this point forward? (For example, a warm jacket because you went to college on the East coast but usually live in California is a need. A cute new jacket you bought just because you liked it is a want.)
Notify your parents if necessary. If you have debt that you can't handle or monthly payments that are too much, let your parents (or other support networks) know. It may be embarrassing, but it's important to get help as soon as you can. And you don't have to view the conversation as asking your parents for money, either; you can ask them for help with the situation. While your parents may not be willing (or able) to pay off your balance, they can help you make smarter choices about how and where to spend your money in the future. And if you're using your credit card for basic needs, like food, they can help you come up with alternatives to that you can still have the basics in your college life without racking up unnecessary debt.
Create a new budget for yourself that now includes your monthly payment -- if not a little more. If you have credit card debt, your new reality is that you now have a monthly credit card payment to worry about. Consequently, you'll need to make a new monthly budget for yourself so that you can make sure you have enough money to pay your bill when it comes due. If at all possible, try to pay off more than the minimum balance, too; the longer your debt just sits, the bigger it's going to get. Even an extra $5 or $10 a month can make a big difference!
