Are All Credit Card Offers Equal?
Credit card debt doesn’t shy away from anyone who doesn’t shy away from it. It treats everyone equally irrespective of whether the person is a seasoned professional or a college student. However, college student credit card debt has become a real issue because most students are inexperienced in the use and management of credit cards. And, they are already in debt due to their numerous student loans. This extra burden is too much for some of them to effectively deal with, resulting in excessive, unmanageable debt.
How Can Students Avoid Excessive Credit Card Debt?
The solution for students avoiding credit card debt is similar to what it is for avoidance of any type of credit card debt. So, the first thing necessary is to understand the concept that credit cards are not a source of free money. It takes discipline to maintain your balance at a reasonable amount and to be able to make all your payments timely.
College is a time of great stress for a lot of students. They are struggling to maintain a balance between their personal, family, educational and financial concerns. A good thing to do is to prepare a monthly budget and follow it religiously. Even though it may take a little while to create a budget you can actually live with, once you have created it, you should never deviate from it.
Another very important preventive measure for avoiding college student credit card debt is to avoid going for additional credit cards. Some students have a tendency to go for multiple credit cards, however, this is a perfect recipe for getting into the credit card debt trap. This will only increase your indebtedness and the stress that comes with it.
Why Is This A Problem For So Many College Students?
We can’t completely blame the students for this problem escalating. According to University of Arkansas researcher, Norma A. Mendoza, “Accumulation of credit card debt by college students has become an issue nationwide. Credit cards are easy to get, and students are acquiring and using credit cards at a greater rate than ever before. An Internet search revealed dozens of sites specifically targeting college students and offering unsecured credit cards. Sponsors ranged from AT&T and Chase to MasterCard, Visa and Discover, but all encouraged college students to ‘start building your credit today’.”
It appears evident that most college students don’t fully understand the implications of using a credit card. It’s convenient, it’s fast, and it allows them to get what they need, period. However, if you’re a college student, you need to read the fine print on your credit card application and fully understand the terms you are agreeing to. You need to know how the credit card system really works and understand how using credit indiscriminately can impact your potential for future employment.
Employers are increasingly using background checks in their preemployment screening. Part of this process includes credit checks, particularly for positions in banking, information technology or other positions where there might be a temptation or opportunity to steal money. Even though, you and I both know this is nonsense, to them bad credit, as far as they are concerned, is an example of a flawed character and will drastically reduce your employment opportunities.
So, before you get too far in debt with credit cards, think about the above. It’s okay to have a credit card, but when you start using your credit card for necessities, you may be in too deep. If you have to use your credit card to purchase groceries or get an advance to keep your lights on, you need to seriously consider getting some help to prevent your credit rating from deteriorating further. And help is all around you, you just have to do a little research. Don’t let one little mistake in judgment affect the rest of your life.
