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Most students do not have a handle on what their total debt load is, whether it can be managed before graduation, or after graduation. Project C.A.S.H. can help students to assess their debt load and plan for repayment.
One of the reasons students get into so much trouble with credit card debt is that most students are unemployed or underemployed. They do not earn enough income to pay the credit card bill off each month, and sometimes cannot even pay the minimum payment.
In general, no more than 10 to 15 percent of your net (after-tax) income should be paid to consumer debt. However, it is recommended that students be even more cautious due to their sporadic employment while in school, and the unpredictability in expenses.
Rather than try to figure out the percentage you can afford to carry in consumer debt, it’s easier to calculate how much you can afford to pay each month for consumer debt. The following worksheet will help you calculate this amount.
How Much Consumer Debt Can I Manage?
This will help you not only look at debt ratios now – but also can help you plan for after graduation.
» PDF
How to Get Out of Debt
It’s best to come up with a plan! The first step is to list all your creditors.
» PDF
When Your Bills Pile Up
A valuable guide to getting those debts under control.
» PDF
The Motley Fool – Deeper in debt than ever before
» WEBSITE
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“... credit card companies now deliberately target students on campuses. With their almost universally below poverty-line incomes and likely financial inexperience, the frequent result is an early and lasting indebtedness to the credit card industry, damaged credit history and the accompanying risk to future employment and housing.”
» WEBSITE
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