Rise in credit card debt among students.

A recent survey conducted by Sallie Mae states that the majority of college students use more than 4 credit cards. The study also reveals that most of the students are facing finance charges as they are not able to make their monthly payments on time. Among college students, the median amount of credit card debt has increased about 3 times in the last 5 years. As per the survey conducted by Sallie Mae, credit debt among students has increased from USD 373 to USD 939 in present times.
One of the reasons for this rise in credit card debt can be attributed to the fact that credit cards have become easily available nowadays. Students are using plastic money to buy every minimal thing. However, credit cards and not the only reason for the increasing debt. A study conducted in 2007 reveals the fact that young consumers aged between 18-24 pay around USD 3 for every USD 1 in a debit card overdraft.
However, there is no reason to think that credit cards are evil; only you need to know how to use them properly. Credit card helps you in a number of ways – like booking a flight, paying your bills online or using it in case of emergency. You can also start building your credit history at a young age, which makes it easier for you to get loans in future if you’re able to establish a good payment record.
Therefore, even if you’re still at college, you should learn how to manage your credit cards. The following points can help you to avoid credit card debt in your college days.
• Avoid using plastic money for day-to-day purchases.
• Read the instructions properly before you start using a card. It’ll help you to know how much you’ll have to pay for cash advances and late payments.
• Don’t be swayed by gift offers to sign up with a credit card company. Always go through the terms and conditions before taking a credit card.
• Be careful about tempting low interest rates, which don’t last long.
Above all, it is really important to pay off your monthly bills on time. It is better not to use a credit card if you’re not financially sound to make your full outstanding payment every month. Even if you’re not able to pay the full amount, you should at least pay more than the minimum amount due.
The above mentioned strategies can help to minimize credit card debt among students.