How To Fix Credit Card Debt After A Gap Year | Refresh Financial

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Credit Card Debt After A Gap Year? Here’s how to fix it

 Credit Card Debt After A Gap Year

Taking a break from post-secondary school can be a necessary change for some people. You've been in school every year of your life since you were 4 or 5 years old - taking a breather before the most intense education of your life can help you reset and come back more motivated than ever to work for your future. The problem is that entertaining yourself for a year can get pretty expensive and accruing credit card debt after a gap year is quite common.

Some students take a gap year to travel the world before they come back and devote their time to their studies. Others indulge in a hobby that hasn't gotten enough attention in a while. Some may focus on fitness while others may use the time to have fun with friends. Whatever you choose to do during your gap year, one thing is for certain: it'll cost you.

Luckily there's s a fix for this situation. It'll take some self-discipline, but it's nothing a post-secondary student can't handle. Here's how we do it:

1. Slim Down Your Budget

- We know that being a student probably means you have a pretty slim budget already, but implementing a budget will be easier now since your financial obligations will only increase later on.

2. Ask Your Parents For Help

- If your parents are willing to pay off your credit card debt so that you can owe them instead of your credit card company, you'll save a ton of interest. Interest alone can bury someone with a full-time income, which makes it especially difficult for students.

3. Make Sure You Have An Income Source

- You can't use your student loan to pay off your credit card debt. You're going to need another source of income for that. A part-time job could do the trick.

4. Live At Home

- If it's possible, keep living with your parents to lower your monthly expenses. We know it can be difficult, but it’s worth it.

5. Put Everything You Can Towards Your Debt

- If this means you have to switch from the good ramen to the cheap ramen, then so be it.

6. Consider A Secured Savings Loan

- A secured savings loan not only helps you build your credit score, but it also gives you a lump sum of cash at the end that you can dump on your debts. Making your payments towards the secured savings loan each month will help you develop healthy saving habits as well. Anyone can be accepted regardless of their credit score and it doesn’t require any money up front! Click here to find out more about the secured savings loan.

If you can implement these helpful strategies, you're going to be well on your way to tackling that debt you accumulated from your gap year!

Did you take a gap year before post-secondary? How did that go? Let us know in the comments!

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