Ways to Avoid Student Credit Card Debt

Credit card companies LOVE students, why? Here’s a short list: 1) students will tend to remain loyal to their first card pursue purchases with it for several years, even though they have loans and usually without jobs as well. In order to avoid debt traps, students really need to avoid using credit cards, even in emergencies (maybe). Students need to have enough foresight to predict the aftermath of credit card usage which would help them keep track of money.

Firstly, credit cards designed for students often come with high interest rates and lots of unsatisfactory conditions. This is primarily because of high default rates among students as compared to any other age group. Furthermore, these high rates usually have limited credit histories. Keep in mind that credit cards aren’t a source of income. Whilst students have good intentions of punctual bill payments after they enter the workforce, these intentions are never realized. Frequently, students lack money managing skills leaving a detrimental streak once they max their credit cards.

Some of these sneaky crooked credit cards issuers don’t require parental consent before issuing credit cards to students. This complicates things financially as students often mismanage money with a combination of sky-high credit access with few credit limits–they assume this is their money and spend on needless material goods. Cash is the most advisable method to avoid student credit card debt; debit cards are also alternatives for students.

Keep away from setting up a credit card, but if you do take one, make it a habit to pay bills. If you don’t heed this warning, you’ll be swimming in credit card debt all throughout your college years.


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