College Students and Credit Cards
For young students facing high tuition costs and exciting weekends out, it can be tempting to use a credit card. Many students sign up for a credit card when they start college or even earlier as an attempt to establish “financial independence” from Mom and Dad. Even students who don’t feel a need to have a credit card may be duped into getting one by creditors’ aggressive student-oriented campaigns. Because they face the high costs of school, are young, and may be less familiar with how credit cards work than older adults, college students have increasingly become the focus of credit card marketing campaigns.
While some college students have credit cards and use them responsibly, others are prone to misusing their cards and risk falling into the credit card debt trap. Many students have started to charge part or all of their tuition to their credit cards, which accrue large amounts of interest over time.
Credit Card Alternatives
According to a report by the U.S. Public Interest Research Group (U.S. PIRG), almost one-quarter of all students surveyed had used their credit cards to finance their education. Charging expensive costs such as tuition and room and board can lead to a large pile of debt that a student may struggle to pay off even several years later.
Students who have credit cards should try to limit their use to emergencies only. For entertainment, food, rent, and other everyday costs, try using a debit card instead. Students who need financial assistance for school should consider applying for a government loan if possible, or consult a local credit union for loan options. Credit unions are non-profit banks that often offer loans to students at a much lower interest rate than those at for-profit banks and on credit cards.
Contact Us
If you are a college student struggling with debt, consider contacting a debt negotiation attorney immediately. Accruing a large sum of debt at a young age can negatively affect your credit history and all aspects of your life – even many years later. To learn more about minimizing your debt, don’t hesitate to contact the experienced New Orleans debt negotiation lawyers of Kervin & Young, LLC today at 504-599-5906.