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How Credit card Debt Affects College Students

Credit card debt is a huge problem if you do not know how to use your credit wisely. This can be a problem for anyone, but it can be especially dangerous for those who are using credit for the first time. Most credit is only issued to those who have the ability to repay those loans, but college students can get credit quite easily. It can be a costly decision.

Even The Government Realizes The Problem 

If you are a college student, there are plenty of credit issuers who are willing to give you a credit card. They realize that you are young and do not have a lot of cash on you. They also understand that most 18-21 year old credit users have no idea what they are doing. Due to this, the government has started studying the effects of student credit card use. While no laws have been passed, there has been increasing government pressure on credit card companies who target students. 

How Credit card Debt Affects College Students

Credit Cards Are Not Free Money 

A credit card is not an evil tool, nor is, credit card debt a bad thing either. Having some sort of debt, and paying it off each month, can build a positive credit history. However, having bad credit habits, such as the ones most college students have, can have dire consequences. Bankruptcy and repossessions are becoming more and more frequent among college students. Ruined credit records are hard enough, but being young, and broke, can make it harder to maintain a basic standard of living. 

Stay Away From Credit If Possible 

The issuers are targeting college students because of their relative ignorance on credit matters. This means that using debit cards might be a better solution. Asking your parents for money is a better option than going into credit debt, even if it infringes on your thoughts of becoming truly independent. Unless you are sure you can avoid using too much credit, stay away until you have a real job at least. 

Credit is not free money and the debt caused by racking up credit purchases should be avoided if at all possible. Used debit cards, or just pay cash for anything you need. If you cannot pay cash, you cannot afford it, or at least if you are still a student. Allow your student loans to be the only debts you have to worry about while approaching your graduation.