Every year, thousands of consumers struggle with credit card debt- many are student credit cardholders. If you are a teenager who owns a student credit card, what can you to avoid debt problems? Consider the following tips to avoid debt for student credit cards holder:
Ask your parent to be your co-signer. According to the new Credit CARD Law, students who are below 21 years old must have a co-signer. Having a co-signer is ideal because a parent can assist a young person in evaluating credit card choices. Review the Terms and Conditions with your parents before deciding which student credit card fits your needs.
Start with a low limit. Because students do not have regular job, it is best to start with a low credit limit. A low borrowing limit is recommended so that a young credit cardholder can exercise more control with his/her monthly spending.
Check your bills. Do not be complacent that all charges in your bill are correct. As the owner of the account, it is your duty to check your monthly credit card statement to make sure that you are not being charged with purchases that you did not make. Keep in mind that consumers have the right to dispute inaccurate reporting.
Do not use your credit card on entertainment. Students love doing recreational activities and usually it also involves money. If you own are student credit card, make sure that you are not using your credit card on unimportant purchases. To avoid unplanned spending, do not bring your student credit cards when going out with your friends on Friday nights or if you just plan to hang out in the mall. Use cash instead of using your credit card.
Plan before you buy. Do not use your student credit card to buy items that was not in your plan to buy in the first plan. For instance, if you find a nice dress or a cool shirt on display while hanging out, do not use your credit card to buy it even if the item is on sale. Before going to the grocery, make a list of all the items you NEED to buy, not what you want to buy. Remember, if you did not put it in your list, then most likely it’s not a very important purchase. Never leave the house to shop without a list prepared to avoid impulsive buying.
About the Author