Sensible Facts about College Credit Card Debt
Once you are out of school and into the college, the air of freedom sweeps you away and you feel you are well capable of taking any kind of a decision, without the interference from your parents. This mindset also creeps in financial freedom and often lands you in heavy college credit card debt.
Avoid Debt Entraps
One of the important things that you must realize before you accidentally get this mess is, how to avoid lucrative offers and think intelligently as 'nothing comes for free'.
As soon as you will enter college campus, you will be showered with credit card offers, with various schemes comprising of exciting things. Do not get carried away and fill up an application form. Read the fine prints, which give the right scenario.
College student credit card debt results from small purchases that add up to become big financial liabilities. Small purchases like DVDs, cigarettes, beer etc tend to be impulsive buying, as students feel that credit card means free money.
According to a study, 54% of fresher have at least one credit card that lands them in USD 1500-USD 3000 credit card debt.
Manage Credit Cards Effectively
There are ways, in which you can maintain your credit card in an efficient manner. Firstly, go for a card that has low or no annual fee attached with it. Also, a card with lowest fixed percentage rate is good, even if that means low credit limit. Often cards with zero or low annual fee offer expire within 6 to 12 months. So read the fine prints before you decide to apply for one.
Always make purchases with your card, do not make the mistake of withdrawing cash with it, as the interest rate for cash advances is sky high.
Limit yourself and have a budget. Know how much balance you have to pay in advance, so that you can calculate the monthly payment. You should make more than just the minimum payment to pay off your college student credit card debt.
Learn to be punctual with your payments, as it saves you around USD 25 to USD 40 as late fine. Late payments are bad for your credit profile and result in a raise in interest late on all other credit cards.
A low credit limit is good to meet some emergency requirements and prevents you into getting into a credit card debt. A better option is to use your debit card, which is directly linked to your account and spend according to the money available in your bank account.
In case, you are already stuck up in a crisis, do not hesitate to opt for a bad credit student loan. Some companies offer a loan to pay up your bad credit; they even negotiate with your creditors and consolidate the payment into a single installment.
Following above mentioned advice could save you from being ensnared into monetary crunch and help you manage your credit card wisely.
College credit card debt is a very common phenomenon, occurring due to the impulsive nature of the students. They tend to get stuck up in a situation they have least imagined. Bad credit student loans are very helpful to students, who face problems on the monetary front to free them from college student credit card debt. For more information visit best credit card debt consolidation.