Credit Card Debt Articles

College Students and Credit Card Debt Go Hand in Hand

The college years are among the most exciting times in any young adult's life. During this time, they get to live away from their families and learn to make wise, and sometimes foolish, independent decisions. For the first time in their lives, they can truly taste freedom and they are understandably eager to practice this newfound independence as extensively as they can. Most college students are still given monetary allowances by their parents.

However, in an attempt to appear as self-sufficient as their buddies, a lot of these college students choose to take out credit cards in their own names. Now, there might be a handful of conscientious young people out there that are actually responsible in using their credit cards, but the general observation is that college students and credit card debt usually go hand in hand. In fact, most college students who give in to the temptation of applying for a credit card find themselves buried in debt in just a few years. Owing to the interest rates of these cards, this will be a debt that most of them will carry well into their adult lives.

In order to prevent this "college students and credit card debt" disaster from happening, you should brief your college-age child about the potential damages that applying for a credit card can bring, especially to someone who doesn't even earn a monthly salary to use for making card payments. You must thoroughly explain to them the consequences of having a bad credit record so early in your life. Stress that this is a permanent record, never to be erased, and can greatly affect the credit limit that card companies give you, or even the interest rate on the mortgage of your first home.

As parents, we always try to make sure that our children are well taken care of and that they are never in need of anything. The problem of college students and credit card debt usually begins when the student feels he needs something but doesn't have the cash to pay for it. A good way to avoid the "college students and credit card debt" problem is to give your child a credit card with a reasonable limit. You can even oblige them to pay for a portion of the bill each month so they can learn the value of money management.

It is always better to give your children constant guidance and instruction than to let them go wandering off on their own. If you are able to instill in them the importance of proper financial organization at an early age, they will take this value with them into their adult life.