College Credit Card Debts
College debts can be a millstone around your neck so it’s wise to give careful consideration before using that credit card.
According to an interesting article at Central Michigan Life.
“College students often run into problems with credit card debt because they use them for everyday expenses,” said Charles Walmsley, financial planner and finance and law professor.
“The biggest mistake college students make when it comes to credit cards is living beyond their means,” he said. “They tend to spend more money than they have.”
Given that the average college freshman carries $1,500 worth of credit card debt, according to a 2005 study by student loan company Nellie Mae, and 56 percent of undergraduates have obtained their first credit card by the age of 18 this is a very real problem for many.
“Credit cards are very easy to acquire for college students, making credit card debt prevalent for them,” Walmsley said. “Credit card companies will relax credit standards to take on more customers at a higher rate, like college students.”
How true!
However with some prudent planning and shopping around you can keep your credit card debts in check. Here are some key tips:
1. Shop around and find the right deal for you.
2. Go for cards with low interest rates.
3. Try and pay back all or as much as possible each month.
4. Ensure that you meet payments promptly.
5. Ignore reward cards and stick with deals that offer low interest rates and interest free periods for transfers.
6. Never use a credit card for withdrawing cash from an ATM.
7. Only have one credit card.
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