|
March 20, 2000
Along with the new sense of freedom you have when entering college, you also may encounter a new type of responsibility, financial responsibility. From obtaining financial independence to the multitude of credit card companies wanting your business, you'll find your financial situations can become overwhelming. From one struggling college student to another, take my advice, certain financial woes due to credit cards can be avoided or corrected. I received my first credit card just before my 18th birthday. Little did I now that what I considered little plastic lifesavers were actually nooses choking the life out of me the more I used them. These cards that I relied so heavily upon to satisfy my everyday personal needs would eventually lead to years of financial strife. To all college students listen to my story and don't make the same mistakes I did.
Tips to avoid and correct credit card debt:
- · Research before applying for credit
- · Avoid excessive use of credit cards
- · Use payment methods, schedules or credit counseling services
Research before applying for credit
You've probably seen them on your campus or in the mall. Credit card representatives whose jobs are to lure young impressionable students into a world of spending, payments and debt. While I was sitting in my school cafeteria working on this article, a man giving away free calling cards to those who applied for a bank Visa card approached me and asked me to apply. Thank goodness I have come to the point where I have the will power to say no thank you. When I first entered college I wasn't that strong. I received free stuffed animals, candy, key chains and a variety of other useless items for filling out applications. Do not apply for credit cards just to get gifts. The key to finding a credit card that works well with your needs is research. Asking friends which credit card companies they recommend will give you a basis to start your research. Calling the companies and asking for literature on the benefits of using their credit cards and that page of fine print, which explains annual percentage rates (APR) and other fees, is also a useful research approach (see related article: "Credit Cards - The Bait and Switch Game").
Avoid excessive use of credit cards
Being out of work for a year led to my credit card problems. You would think that at this time I would have avoided using my credit cards because I didn't have sufficient funds to pay my bills. Well, in my case I used my credit cards to pay for things that I definitely did not need. I bought new clothes every week, expensive dinners with friends, concert tickets and unnecessary gifts for family and friends. I urge you to think before you buy things that can definitely be paid for with cash. If you can't pay for an item with cash, maybe you should wait until you have the funds to purchase it. In the long run excessively using a credit card is not worth it. Pretty soon you will have a huge bill and you won't be able to remember the many little items you purchased with it. Try to limit credit card use to emergencies only if at all possible. I know it's hard when you see something you want and you don't have the cash flow to get it, but it's better to wait in order to avoid getting into debt. You must be prepared to handle the repercussions of your spending habits, so make wise decisions.
|
