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College Student Credit
Cards: Tips
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DontSpendMore.com
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College student credit cards can be a handy tool
in times of emergencies, but be careful. Most students land up in huge
credit card debts on their student credit cards even before graduating.
The burden of paying credit card debt has been bogging down millions of
students across America. Add to that student loans, student credit
cards, entertainment expenses, personal expenses, and college tuition.
An average college student in America can easily owe thousands of
dollars for student credit cards even before getting their first "paid"
job. Sounds familiar? It doesn't have to be that way. One can easily
avoid piling up huge debts on student credit cards with some smart
budgeting.
I am often asked: "A paradox arises from the need to build credit,
while at the same time avoiding the debt trap. So how does one avoid
piling-up huge credit card debts, while at the same time smartly using
college student credit cards to build a good credit history -- the
foundation of one's financial future? My answer: smarten up, you are in
control of the situation. Yes, you! Let's see how.
Click here to compare low apr college student credit cards. Instant decision!
Budget, budget, budget. College students are the worst hit by a resource crunch. Tuition, books, rent, friends, entertainment, movies, vacations...the list of expenses is endless, while resources are not. A lot of students often work two -- or even three -- jobs just to make ends meet. Relax, this is bad, but not as bad as you think. Creative budgeting can land up saving you much more than you think. Impulse expenses hit college students the hardest. Avoid them! If you see something you feel like buying at an impulse, don't! Tell yourself, "I'll think about it." You will often surprise yourself by realizing later that you didn't really need that item.
How does one budget? For starters, make a list of things you spend money on. Maintain a journal and every time you spend money on something, make a note of it. Analyze your spending habits daily. You will be surprised to see how much of the money you spend could be saved or used in a more productive manner. A careful analysis of your spending pattern will be the first place to start the analysis. See what expenses could be avoided; sometimes, doing things differently is all it would take to save money. Remember, necessity is the mother of invention. Once you know your spending habits, make a budget. What if you didn't budget? What would happen? You know the answer, don't you. Now, what if you did budget carefully? What would happen, then? Gives a better answer, doesn't it? You don't have to live like a miser; just being careful is enough. Set-up a punishments and rewards system. If you achieve your budget goals, reward yourself with a little treat and if you don't, take on a punishment -- don't cheat. Remember, it is all about you being in control.
Click here to compare low apr college student credit cards. Instant decision!
Beware of credit card marketing
gimmicks.
Have you ever wondered why so many credit card companies setup tables
in your school's cafeteria and bookstore? Companies offering student
credit cards know that you are a safe bet. They know you will use the
credit cards and earn them hundreds of dollars in interest. Think about
the last time you were tempted to
complete a college student credit card application. Weren't you tempted
by a CD or a T-shirt? Did you even bother to read the fine print while
completing the credit card application? Did you ask for a disclosure?
No, right? You were probably not even aware of the interest rate your
credit card issuer would be charging you. Next time, be careful. Read
the credit card application carefully. If you don't see the disclosure,
ask for one. Credit card issuers must provide you with detailed
information about their offer terms. It is required by the law and they
know that, even if you don't.
Transfer your high interest balances. Some credit card companies will provide you student credit cards with a low introductory APR (for a certain period of time). If you apply for one, transfer your high interest college student credit cards to a lower alternative. This simple step will save you a huge chunk in interest expenses. Again, you must be careful and read the disclosure statement. Our article on balance transfer will provide you with a few tips in this direction. Calculate how much you owe and how long the promotional offer will last. Your goal must be to pay off as much of the debt as possible before the promotion ends.
Click here to compare low apr college student credit cards. Instant decision!
Aim to be debt free.
Your aim should be to get rid of as much debt as possible. Set aside a
fixed amount -- a lot more than the minimum payment -- that you will
pay every month. The more you pay, the faster you will be debt free.
Don't fall into the habit of paying only a minimum payment (however
tempting it may be) each month. Aim higher!
The FTC. The FTC is an agency that wants
to protect you. You must visit their website and get acquainted with
your rights. You can visit FTC at:
http://www.ftc.gov
Being financially stable and debt free is a great feeling and we want you to experience it.
Click here to compare low apr college student credit cards. Instant decision!
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