Credit Card Companies Play A Catalyst In Boosting The Student Credit Card Debt Level
Lately, we heard that the student loan debt level is about to cross the $1 trillion mark and is being feared to be the next big thing that will detrimentally affect the US, but did you know that the students also owe an outrageously large amount on their credit cards? An eminent person of the Central Washington University said that every year there is 18 million students flooding the campuses and they’re generally greeted by none other than the swarm of credit card companies. T-shirts, Frisbees and iPods are used as enticements to provoke the students to sign up with their companies. While some 75% of the students go for it, the remaining 25% don’t do so as they’re pretty ignorant about the entire financial idea of handling credit cards. The role of credit card companies in escalating the student loan debt level is also under great scrutiny by the Congress and the critics are of the opinion that the credit card companies are doing this to stay afloat in the rising competition.
Tips for students who are being lured by the credit card companies
Credit cards might seem to be the most convenient tool that allows you to buy things without paying cash. But the reality is that most of us get tempted to shop with our credit cards so much so that we drown in debt while not being able to pay back the amount owed. If you want to know the tips, read on.
- Stop succumbing to the temptation of getting cards: No matter how many cards your friends have signed up with, you should not follow them as your friends won’t lend you money when you’ll be unable to pay off the balance. Control yourself and rein in your finances only to see a brighter financial future.
- Say ‘No’ to multiple cards: If you still insist on taking out a credit card, restrict it to a single card. Simply say a ‘No’ to all the credit card company offers that you get after you’ve closed the deal with your company. Handling multiple cards and living on a fixed income level is pretty tough for a student.
- Pay off balance in full: You should pay off the entire balance that you incur in a month as accumulating the balance will unnecessarily lead to accumulation of late fees and penalty fees. Also try to make more than just the minimum monthly payments to the credit card companies so as to get rid of debt sooner.
Being a student, you have to lead a responsible life so that your mistakes don’t lead to a dark future. Try following the above mentioned tips to avoid amassing student loan debt and hurting your credit score.