Money Magazine ( Money logs )

Credits cards, no doubt, give you purchasing power. You go on a shopping spree on your credit card and pay later on. But, once you get into a debt trap, you get into a vicious circle and then it becomes very difficult for you to get out of it. Most people know this fact in principle, but are unable to understand how things pan out. It is most common among youngsters who have just started with their jobs and get hands on credit cards.

Getting Rid Of Student Loan First things first: If you have student loans, you aren't doing yourself any favors by waiting to see if your lender notices you've graduated. Some loans have what's called a "grace period," or a year gap after you're finished with your education, ostensibly to allow you to set up an income. The thing about grace periods, though, is that interest continues to accumulate - so if you can start making payments immediately, it can ultimately save you money.