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Being in college or university is a wonderful experience that one will never forget. It is also during this college time that most college students will start to have their own credit cards. In the past, when students' purchasing power are limited to the amount of cash they carry, it is a totally different story now that college credit cards are readily available. Usually what happens is that as time passes and a college student gets older, his debt gets bigger as well. Nevertheless, this condition is not totally hopeless. He can still turn things around if the situation can be controlled again. Most college students start to get involved in some kind of debt when they got their first credit card. Even though this is the case, we can always educate them about credit cards and stress about their disadvantages rather than about their advantages. By doing this, we could potentially save college students from falling into the college credit card debt trap. Most credit card companies usually offer a very low introductory interest rate for their credit cards for the first year. This entices college students to quickly apply for them without giving much thought. Then for the upcoming years, this interest rate will start to increase. Luckily the credit cards' limits for these students are relatively small when compared to working adults. Basically, the solution to dodging college credit card debt is very similar to dodging any other kinds of debt. The first and foremost principle that a college student must understand is that a credit card is not like free money. Once he swipes his card now, he has to pay them later. He must understand that paying off his credit card balance is his sole responsibility. We can also tell them real stories where there were extreme cases of college students who were heavily involved in credit card debt who committed suicide. Even though they worked two or more jobs while attending college, they were only able to make the minimum payments on their credit cards. It is estimated that around 80% of college students have at least 1 credit card in their wallets, and it is also estimated that 20% of college students graduate with US$7000 of college credit card debts. Can you imagine a college student with no real income and no credit being offered a credit card? Another disadvantage of being involved in college credit card debt is that when college graduates venture into the corporate world, many will be shocked to realize that potential employers actually do make background checks on their credit histories. Today, there are a lot of 18 and 19 year olds who own credit cards. If they are not educated properly, their futures will be ruined as they will struggle for the rest of their lives just to pay off their college credit card debt.
Article Source: http://www.share.onlypunjab.com
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