Five Ways to Avoid College Debt

Getting credit in college is avoidable. All it takes is preparation, forethought and a little self restraint. Disciplining yourself to live without credit while you're in college will benefit you greatly when you actually need it. College debt can ruin your credit before you even graduate, now who wants to live in a dorm all their lives? Learn five great ways to avoid credit cards and school loans while still having the things you want.

Start Your Own College Fund

Were you crushed when you found out that your parents started a college fund when you were a baby but depleted all but $60 before your fifteenth birthday? One of the number one ways college students create debt for themselves is to take out enormous loans to pay for school but if you plan right you can dodge those pesky loan officers. Avoid running out of money or not having enough for college by creating a college fund before hand.

Create a savings account for yourself that no one else knows about. The sooner you create this account the better because you will be able to save more money. Make sure you don't have ready access to it-like a debit card. Save as much money as possible. It is a good idea to try to live on a budget or on other people's money (that you don't have to pay back) for as long as you can so you can save big. It is a good idea, especially if you have a job to save a set percentage of the money you make. Since this is a college fund, save at least fifty percent of everything you earn-shoot for more if you can. It may sound like a lot now, but remember your college fund includes everything from tuition to cars. Don't forget to continue to build replenish your college savings account as you make withdrawals.

Avoid Getting Credit Cards

On your college's student welcome day, did you see that old guy in a suit wearing the "suck you dry" visor and carrying the red billboard screaming, "we'll take your money, we'll prevent you from getting a house, we'll harass you at 12am"! Okay, it's an exaggeration, but certain colleges do choose to endorse credit card companies. These companies entice students with their fancy t-shirt giveaways and free pens, what a way to go!

Of course this isn't the only place they try to charm college students. As soon as you turn 18, credit card companies basically knock down your door to get you locked into their system. Oh but remember, when you miss one payment your interest rates may increase and not to mention, you will be charged a hefty late fee. The rule of thumb with getting credit cards is, if you can't afford it with your own money, don't try to use someone else's that you'll have to pay back-with interest!

Obtain Scholarships and Grants for Every Year of College

The worst thing college students can do is to not apply for scholarships and grants each year in college. So you may not be eligible for anything your freshman year in college, but that doesn't mean give up. Your eligibility status could change each year you are in college. The best thing to do is sign up with a scholarship database like fastweb.com which gives frequent updates on scholarships and grants that meet your eligibility.

Completing a FAFSA each year is the most responsible thing a college student can do regarding obtaining money for college. The Free Application for Federal Student Aid (FAFSA) determines your eligibility for federal financial aid and in most cases is required in order to be considered for any of your college's scholarships. This will help you get free money not borrowed money, free, free. . .free!

Avoid Leasing a Car

It's definitely cool to have an updated, newer model car while you're in college. However, if you or your parents can't afford to pay for it in full, it's a better idea to wait to make that gutsy move after you graduate. Leasing a car involves credit, interest and plenty of unnamed fees. Honestly, it's just a big hassle and majority of the time isn't even worth it.

If you are looking for a semi-new look, try purchasing an earlier model car in your price range. Sometimes you can find a three or four year old model that is just as jazzy but half the price.

Get a Part-Time Job

Working a full time job and going to school isn't so smart but if you can hold down a part-time job and maintain good grades in your courses then do so. This is a great way to afford the little luxuries that quickly add up on campus-parties, drinks, fast food, clothes, etc. This will prevent you from having to get credit debt and loans that you really can't afford. Your best bet is getting a job at a place that you love to shop or use their services a lot-movie theater, grocery store, retail clothing shop. This way you get discounts on your favorite items while earning a part-time income. When has double dipping treated you so good?

All credit isn't bad credit but it's not worth it until you can handle the responsibility. Swallow your pride and be a little frugal for the next four or five years, be patient and don't eat the bait!