Debt management tips for new graduates

The high cost of education and limited opportunity to earn income can make it difficult to have a healthy financial life in college. For Connecticut students, graduation often comes with major debt management questions. How much should they set aside for savings versus debt repayment? What does a healthy budget look like? Here are a few tips that can help recent graduates get off on the right financial foot.

Self-awareness can be very helpful in managing finances. People should know whether they are inclined to overspend, and limit themselves if their habits are unsustainable. They should also clarify what their future goals are, as this can often dictate the financial moves they should make.

Credit scores will have a major impact on recent graduates as they can affect many things young people want to do such as buying a car, renting or buying a home and even getting a full-time job. It’s a good idea for young people to consider ways of improving their credit score. This can includes increasing their credit line without using it and having a history of paying off credit cards. Debt management strategies should be considered in light of credit score implications.

For some students, high interest loans and personal circumstances have damaged their credit score a great deal by graduation. Such circumstances may also put them in a position where they may need to consider bankruptcy. While student loans are often not dischargeable in bankruptcy, this may still be the right move for students with high consumer or medical debt loads. A Connecticut lawyer can help clarify all debt management options available under the law in these cases.