College Student Credit Card Debt: Understanding the Menace and Ways to Avoid It
College Student Credit Card Debt: Understanding the Menace and Ways to Avoid It
Credit card debt is a common problem that affects people of all ages and backgrounds. College students are no exception. In fact, college student credit card debt can be an even bigger menace, given that many students are already in debt due to the loans they have taken for their education.
The credit limit on college student credit cards is usually much lower than that of other credit cards, which is why credit card suppliers keep a lower credit limit on college student credit cards. However, this doesn't mean that college student credit card debt cannot rise to dangerous levels. Inexperienced college students can easily fall prey to what is known as 'college student credit card debt.'
To avoid college student credit card debt, it is crucial to understand that a credit card is not free money. Whatever you pay for using your credit card has to be paid back to the credit card supplier when your credit card bill arrives. Therefore, it is important not to treat credit cards differently from hard cash. You should avoid overspending, which means not buying things just because they are on sale. Sales come and go, and there are always better offers each time. Buy only those things that you really need. A good way to avoid overspending is to prepare a monthly budget and stick to it religiously.
Another important preventive measure to avoid college student credit card debt is to avoid getting a second credit card. Some students have a tendency to get multiple credit cards just because the credit limit on college student credit cards is very low. However, this is a recipe for getting into college student credit card debt. One credit card is more than enough for any student.
College student credit cards are meant to be a training ground for learning more about credit cards, not an instrument of debt. By following these simple tips, you can avoid college student credit card debt and start building a strong credit history.