Credit card debt is common among college students for two simple reasons. First, credit card companies make it easy for students to get credit cards, even with no credit history behind them. Also, according to DebtFreeMap.com, students are turning to credit cards to cover courses and educational expenses that their loans and grants won't pay for. Although credit card debt might be a necessity at this stage, there are still steps one can take to keep the numbers low and the debt manageable.
Step 1
Look over credit card offers you receive and evaluate their value. If you are offered a high interest rate, pass on the card. If you have the chance to take on a card with a low interest rate, find out if you can transfer the balance from other cards to that one so that you can save in fees and extras. Also, compare number among offers by looking at the cards' annual fee, finance charges, cash advance charges and late payment penalties.
Step 2
Treat credit cards as loans rather than as a free-for-all shopping opportunity. Using your credit card to further your education is not ideal, but it makes more sense than using it to buy designer jeans. Be aware of your purchases and don't exceed your limits.
Step 3
Look for a consumer education program that can help you understand credit card debt and how to manage it. Mastercard has its own Master Your Future program, or you can look into the National Endowment for Financial Education's High School Financial Planning Program. Despite its name, the program also works with college students. Many colleges also offer budgeting and debt management classes that you may consider.
Step 4
Get into the habit of paying off as much of the balance as you can every month. You might need to set up a budget so you don't end up spending more than you can afford on unnecessary items. By paying off more than the minimum every month, you will avoid incurring hundreds of dollars in interest and penalties.
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