Thinking about signing up for a TD Student Line of Credit? Or even better, you’ve already got one. Now what? If you don’t already know, a student line of credit is a pretty smart borrowing option. Congrats. But only if you know what to do with it.

Don’t forget about your budget.

Yes. While your student line of credit is convenient when you need help with books, supplies, and other school related costs, it’s not free money. You may think for a moment that you really, really need a new outfit, but do you really? Really? For the things you want, look to your budget to find non-essentials you can cut back on.

In case of emergency.

Think you won’t have enough in your chequing account to cover a cost? Consider transferring the difference from your line of credit into your chequing account. That way you can avoid NSF (non-sufficient funds) fees.

Smarter debt.

We all make mistakes. Maybe you were a bit too quick to use your high interest credit card, and now you’ve maxed it out. You could use your line of credit (which likely has a lower interest rate) to pay off your credit card debt. That way, you can be paying it off, but now with a lower interest rate ‑ saving you money. Then learn your lesson, and hide your credit card.