Can Credit Debt Affect Your GPA?

“Researchers have found that students who felt stressed financially had lower grades than those who did not.”

Credit card debt can add an extra financial stress on students. Normally, credit cards have a higher interest rate than other types of loans. A student with higher credit card debt may have to work extra hours in order to make the monthly payments, thus reducing the time for studying which may affect the performance in school. As credit cards are very useful at times, spending should be done responsibly, so it doesn’t accumulate debt that you cannot pay.

Getting Out of Debt: Step 2

Plan your strategy. As annoying as it seems to be analyzing all details of each credit card and loan you owe, you must do it and preferably write down the numbers.

  • Decide which debt you want to pay first: the high interest rate or the lowest balance
  • For those debts, decide how much above the required minimum you can afford to pay each month. This will determine how fast those debts will be paid off.
  • For other debts, setup automatic monthly payments

If you cannot afford to make the total monthly payments towards your debt, you may want to consider professional advise from a credit counseling company or a bankruptcy attorney

Getting Out Of Debt: Step 1

Determine how much you owe. Start with making a list with the following items:

  • all your debts, including mortgage, vehicle loans, student loans, other types of loans, accounts in collection, credit cards
  • for each loan, note the interest rate and the monthly payment
  • for each credit card, note the interest and the minimum monthly payment
  • Add the monthly loan payments and the minimum credit card payments to determine the minimum amount you owe every month.