College Credit Cards Blog

College credit cards have substituted student loans as every freshman’s first experience with college student credit. Besides, at the sophomore stage, out of 100 students, more than 90 are as a rule found to hold at any rate one college student credit card. The problem is - why do a lot of students usually find themselves in a catch-22 situation of debt with the college student credit cards? And why are they startled with the enormous bills they receive every month? Most significantly - must it unavoidably always be this approach for a college student credit card consumer or are there simpler ways?

So, there are many statistical indicators to put forward that students manage credit bills regularly however they never pay down their college card balances enough. Around 21% of all college credit card consumers have balances from $3,000 to $7,000. And the number of college credit cards in a student’s possession keeps growing - a sign that students might be getting new cards to in order to pay off balances on their old ones. However this only leads unavoidably to their general credit balance rising even faster, by that adding debt to a apparently never-ending descending spiral of debt.

Some Steps to Avoid Debt

The main reason of this dismal plight is the lack of a well-disciplined and planned scheme of spending. So, if you, being a student, desire to optimize the utilization of your college credit cards, employ the following guidelines in order to plan your expenditure:

Pay your credit bills on the dot. Late fees are, undoubtedly, the most needless source of extra credit expense. Always make sure that you always meet your minimum payment on the bill. Preferably, you should attempt to pay a bit more than your minimum amount to in order to reduce some overall charges.

Employ the 20/10 rule. Take care that you never and ever borrow over 20% of your yearly net income as well as never spend over 10% of your per month income on the monthly payments. To put it differently, balance your credit card budget in order to avoid any irregularities in your monthly payments.