Don't Let Your Debt Turn You Into A Drop-Out!

Here's a scary thought: A study conducted by Operation Hope (OHI), a national non-profit self-help organization, showed that many university administrators believe that credit card debt leads to a higher drop-out rate than academic failure.

Could the stress of debt have more of an effect on students than the anxiety that comes with receiving bad grades?

At any age, the pressure and uncertainty of being in a financially unstable situation can be profound. But it can impact us even more when we're just starting out, when we're younger and more vulnerable to economic factors. After all, we haven't had as much time as our parents to accumulate and grow our wealth and to put investment options in place. Heck, we're usually lucky if we have a savings account with more than a few hundred bucks in it!

But if you are a student affected by debt, remember this: You can make the choice to do something about your financial situation and take steps to reverse it.

There's no better time to get out of debt than when you are young. Change your habits now, and you can choke off years of high interest payments and bad credit reports that will stand in the way of the life you want. Here are some tips to get started:

1. Pay your bills on time. This has the greatest effect on your credit report.
2. Borrow books from the library or buy them used instead of at the bookstore.
3. If you live within one hour from your school, move back home. Room and board often makes up 50% of education expenses.
4. Work during the summers and part time during the school year to get the ammunition you need to start paying down your debt. Not only will this help you graduate with less debt, but a solid work history will help with finding a job after graduation.
5. Live on a budget. It doesn't take a math major to make a budget that fits within your student means, but it takes real discipline to live by it.

The bottom line? Dropping out of school because of debt is never a smart move - instead, continue to educate yourself on how to turn your financial situation around.