Student credit cards are very popular these days, because they enable college students in the US (who are over 19 years old) to pay for everyday expenses like groceries and utilities. These cards also offer a reward system and other juicy incentives when students get good grades, and pay their bills on time. However, these cards can also be a cause for headaches, or frustration,because if your debts pile up, you may have a tough time paying them off. Here are a number of tips on avoid student credit card debt.
Keep Track Of Your Purchases
If you have a student credit card, make sure to keep close track of your purchases, and pay your card’s balance each month. By paying on time, you’ll avoid paying interest, while still building credit.
Pay More Than the Minimum
If you’re not able to pay your stud ent credit card balance full each month, at least pay the minimum amount, or you’ll paying off the debt much longer. If for example, you own $1,000 debt with a 13 percent interest, you can pay the minimum of $20 at the onset, and increase your payments once you’ve got extra money already.
Try Using a Debit Card, Instead of Credit Card
To avoid incurring more debt, try using a debit card instead of a credit card. A debit card’s often linked to an existing bank account or prepaid card. This way, you won’
t incur debt each time you charge something. Debit cards however, won’t help students build credit history.
Get a Campus Job
To avoid incurring high student credit card debt, it would help if students get campus jobs, to aid them in acquiring spending money, and enabling them to pay more than the minimum payment on their card bills. Most campus departments today hire students as laboratory assistants, dorm or building supervisors, graders for professors, which are usually done after school hours. For instance, for just $30 income a week, it can provide students with $15 of spending money per week, and an extra 60 dollars a month for paying credit card bills.
Apply For Income-Based Repayment Plants
Students may also wish to apply for income-based repayment plans on student loans, in order to lower credit card payments.
Probably the best way for avoiding student credit card debt, would be to stop buying unnecessary and expensive clothes or items. Learn to live on a budget, and use cash for paying for goods and services. The key to steering clear of credit card debt also lies in instilling responsible habits like frugality, and quickly paying off any credit card balance each month.If used responsibly, student credit cards can be a very useful item. Some cards even offer reward points, or a points system that provides the student points for every dollar they spend.Some cards also offer 0% APR (annual percentage rate) on purchases, and allow users to hold a balance from one month to the other, without incurring high interest