Finished College With Credit Card Debt? 3 Tips to Tackle It

Worry not -- your debt doesn't have to drag on forever.

If you found yourself perpetually cash-strapped in college, you were probably in good company. Many college students end up racking up debt on their credit cards, largely because they're unable to work full time (or in some cases, even part time) while pursuing a degree.

But if you've since finished college with a pile of debt, you may be eager to get rid of it quickly. Here's how to tackle that debt so it doesn't hang over your head for years on end.

1. Figure out which debts are costing you the most

Owe money on a few different credit cards? Chances are, each card comes with a different interest rate attached to it. One of the first steps you should take on the road to shedding your debt is seeing which cards are charging you the most interest -- because those are the debts you'll want to pay first.

You might assume that you should tackle smaller debts first, since they're easier to knock out. But if you owe $500 on a credit card charging you 12% interest and $1,000 on a card charging 16% interest, it pays to tackle the larger balance first. 

Granted, attacking the lower balance might be good for your morale. But it's important to look at the big picture and minimize your interest charges, because doing that will make it easier to knock out your debt for good.

2. See if you qualify for a balance transfer

A balance transfer could be a good way to consolidate your existing debt and make it easier to pay off. This especially applies if you're able to snag a 0% introductory rate offer. 

But be careful -- balance transfers can trip you up if the fees to move your balances over are high. And also, for a good offer, you'll need decent credit. If you don't have that, you may not qualify for an offer worth pursuing -- or you may not be able to do a balance transfer at all.

3. Look at a personal loan

A balance transfer can help you consolidate your debt so you're making one monthly payment instead of keeping tabs on four or five different accounts. A personal loan could have a similar effect, and while you generally won't manage to get a personal loan with a 0% starter rate, these loans generally charge less interest than credit cards in general.

Of course, as is the case with a balance transfer, a not-so-great credit score might trip you up on the road to qualifying for a personal loan. This doesn't mean you won't get to take one out, but you may get stuck with a higher borrowing rate than you'd like. But if you happen to have pretty good credit, a personal loan is definitely worth looking into. 

Graduating college with credit card debt can be a tough thing to deal with mentally and financially. But as you establish a career and start earning a steady income, you'll be in a stronger position to tackle that debt. And if you take the right approach to eliminating it, you might be debt free before you know it.