Tips on Managing Debt

Everyone has made mistakes with money. Sometimes the mistakes can be costly. These tips from KHEAA may help you keep mistakes to a minimum or avoid them all together.

Each year, millions of adults of all ages find themselves struggling to pay their monthly bills. Overspending on credit cards, taking out car loans and having to pay living expenses such as rent, mortgage, utilities and buying groceries can become overwhelming if you haven’t learned to prepare a monthly budget and follow it.

If you find you don’t have enough money to cover your bills every month, you need to make some changes. Look at all your expenses and see what can be cut. Do you really need to belong to the gym or tanning salon? Where else can you cut? If you’re eating out more than once a week, stop. It’s cheaper to buy fresh produce and meats and prepare your own meals at home.

If you have cut as many expenses as you can and still don’t have enough money to cover your bills, you need to look at your income. Maybe you need a better-paying job? But those aren’t always easy to find, so a part-time job might be the solution.

KHEAA is a public, non-profit agency established in 1966 to improve students’ access to college. It provides information about financial aid and financial literacy at no cost to students and parents. KHEAA partners with Overture Technologies to provide the KHEAA Student Loan Marketplace at www.kheaamarketplace.com to help students and parents find the private college loan that best suits their needs.

KHEAA also provides the ThinkAhead Net Price Calculator to universities and colleges. The calculator, available on a school’s website, lets students and parents determine their out-of-pocket costs for attending that school. KHEAA also helps colleges manage their student loan default rates and verify information submitted on the Free Application for Federal Student Aid (FAFSA).