College Credit Card Debt – A Bad Career Beginning

Passing out from high school is in itself a great experience. The sense of achievement is high and good career expectations are obvious. But along with it, should also come a sense of responsibility and financial acumen. A mature student will understand how to spend responsibly and avoid getting into debt and further looking for student debt consolidation loans.

The Desires Are Many, But Manage Them Well

The moment, students step into the university, they are flooded with offers to sign up for credit cards. To entice them, they are offered free gifts like T-shirts, DVDs etc. Although for a student, it’s essential to have credit card in order to apply for online courses. One should avoid mindless spending on credit cards that result in their falling into college credit card debt. The expenses like pizza outings, beer parties, cigarettes etc. even though looks small, add up to a big amount. The income might be limited at the beginning and needs to be matched up with expenses. The college student credit card debt will appear small at the beginning but will take a gigantic proportion if not managed properly. The bad credit student loans will haunt them their entire life if preventive measures are not taken in time.

Steps Need To Be Taken To Avoid Falling Into College Credit Card Debt

The card companies are trying to gain on the students’ general behavior of impulse purchase. As per recent statistics, 92% of the students own at least one credit card. Moreover, by the time of graduation, college student credit card debt ranges from $1500-$3000.

In order to avoid falling into bad credit student loans, one should follow the steps given below.

Students should go for a no charges & low interest credit card. Generally one card is enough. Remember to pay all your bills on time. This will be possible if you budget your expenses with your income sources. Also set your credit limit deliberately low, to avoid unnecessary college credit card debt. Moreover, never try to withdraw cash through your card, it works out very expensive. Last but not the least; get a debit card instead of credit card. The debit card will be linked to your checking account. All expenses on the card will get deducted automatically from your account. This will also ensure that you do not exceed your spending capacity.

These few steps will help you avoid bad credit student loans and will build a strong financial base for your future.

Source by Asheesh Mani

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