Being Financially Responsible
They don’t call it the Generation Debt for nothing. You don’t want to become a bad credit risk before you even get your degree. You’ll jeopardize your chances for getting car loans, buying your first condo, even renting a car or an apartment. And even if you do pay your bills on time, you can still rack up a lot of debt. In fact, 60% of college graduates have educational debt burden and over 50% owe at least $1,500 in credit card debt. For these reasons, many delay getting married, buying a home, or starting a family.
Late payments can incur any number of undesirable consequences:
- Delinquency fees
- Finance charges
- Black marks on your credit history
- Reconnection fees if it’s a utility bill
To get a handle on your finances, do the following:
- Set up payment schedules – Write the dates when you need to mail your checks – a date that’s at least ten days before the bill is actually due.
- Use your planner – Record payment times in your appointment book
- Use an online tool, such as Google Calendar. You’ll be notified by email of upcoming payments you need to make.
- Set up an online payment system with your vendors, lending institutions, and credit card companies. They can debit your bank account on a predetermined day each month. That way, you won’t have to remember to write checks, but you will have to remember to record these deductions in your check register.
If you can’t pay a bill in full, contact the vendor to see if you might negotiate partial payment or set up a payment plan.