Credit is a double-edged blade. On the one hand, it can be incredibly freeing: by just swiping your card, you can instantly buy something that you otherwise could not necessarily afford if you were to pay cash.
On the other hand, credit can also quickly become a weight around your neck of the guitar that weighs you down and keeps you from living a worry-free life.
Individuals who are able to balance their credit card consumption in an even-keeled way are the most fortunate of them all. However, this is not as easy as it sounds. Tens of millions of individuals are carrying more credit card debt than they are comfortable with, and it costs them dearly.
College students, particularly, can simply fall victim to irresponsible credit card usage. This is probably due to the truth that for most school students who have credit cards, this is the first time in their lives they may have really be given access to a lot buying power at once. In addition, university students face several of very legitimate costs that need to be paid if they are to stay in school.
If you are a university pupil who is considering getting a card – or are the parent of one – it is a good idea to know first what you are getting into. You also need to consider your other options before applying for a card.
Should you be looking for the right credit card for a university student, these key statistics tell a story about school personal debt:
1. The standard school student carries over $3, 1000 in card debt:
A 2009 study by Sallie Mae, the college-financing company, found that the average undergraduate student carried $3, 717 in personal credit card debt in 2008. This was the best level ever since Sallie Mae commenced taking the twelve-monthly survey 11 years prior.
This statistic indicates, of course, that college or university students are increasingly depending on their cards to make purchases for each day items.
2. Grads have even more debt:
The particular same study found that graduating college or university seniors who had at least one card carried an average of $4, 138 in credit card debt in 2008. This figure was up an astonishing 44% from 4 years before.
3. College expenses are on the rise:
While college or university students have long had to deal with keeping their own charge card spending under control, they are now facing more challenges than ever.
Over the past 10 years, tuition and other fees at public colleges have risen 50 percent, in accordance with a College Panel study. College-related expenses are on the rise, and many students increasingly depend after their cards for covering those expenses.
4. Credit card companies are now prohibited from taking new students directly:
Still considering a card? That is okay, you (or your child) will be the accountable type.
Still, there is one other problem: it is harder to be eligible for a a card than ever before before. New Congressional legal guidelines makes it illegitimate for credit card companies to solicit the business of anybody under the era of 21. Of course, you can still be eligible for a card in that case, but you will desire a qualified co-signer for your application who will agree to be in charge of the debts you bear.
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