Debt Help for Students

A nationwide survey has come back with results that state that more of America’s college students are carrying – and using – credit cards than at any other time in history. I don’t know about you, but no one showed me anything about using my first credit card, or took the time to explain things like interest rates, minimum payments, credit limits, or anything to do with credit. I had to learn all this as I went along, and unfortunately, so are America’s college students.

Most students have precious little experience with using credit. They have a tendency to use their cards to overspend and end up needing help with their debt before they have even graduated from college. Once they do graduate, they not only have a big credit card bill to pay off, but usually a student loan to repay as well. They start the next chapter of their life deeply in debt, which is a shame for someone so young and fresh out of college. This should be one of the most exciting times of their life as they get started in a new job and possibly a new place to live as well. But their debts keep mounting, and some of these young people are even beginning to consider bankruptcy before the age of 25!

How can a college student make sure that this does not happen to them?

• Make sure that you understand that your first credit card is not a source of freebies. Anything you buy with that card has to be paid back to the company that issued it to you when your bill arrives – with interest.
• Just because you have a credit card doesn’t mean you have to use it! Don’t charge everyday things like food, gasoline or entertainment. Save the card for emergencies if at all possible.
• Draw up a budget for yourself and stick to it. If you aren’t exactly sure how much you would spend on an item, it’s perfectly okay to estimate the cost, a little on the high side for budgeting. With a budget, you will know at a glance how much you can spend for the things you need.
• One credit card is enough! Don’t even be tempted to apply for another one just because your credit limit is so low on the one you have. With more than one card, your debt will pile up even faster, and you’ll definitely need professional help to get out from under that much debt.

Despite popular belief, the credit card companies meant for student credit cards to be used for young people to learn the ins and outs of credit – that’s why they have such a low limit!Don’t make the mistake that so many young people have made! Start your post college life free of debt that will take quite some time to pay in full.