A common scenario often found with college students is that of serious credit card debt problems. Most often due to improper credit card usage or reckless spending habits college students find themselves into debts which are very difficult to repay.
The credit card game is dangerous and as a college student can lead you to difficulties beyond your capabilities if you do not take an early hold. You can satisfactorily avoid falling prey to such problems if you take steps ahead of time. Having a good credit card record can not only be good for your present finances but also your future ventures.
So here is a list of some easy tips to help you stay far from credit card debts during college:
1. Keep the credit card number low: If you apply for more credit cards it will open you to a higher amount of credit. But it will also hurt your credit card score. Having a higher amount of credit leads to maxing out on credit cards every time. These practices when followed over a longer period of time hurt your credit rating to a large extent. So it is advisable that you apply for only one or two cards and stick to a low limit while using them to avoid any debt problems.
2. Stick to a manageable limit: If you keep on spending on your credit cards you are sure to incur balances which might be difficult to repay. Again if you max out on your cards it may hurt your credit score. In order to avoid such problems stick to manageable low limit that you can pay off easily.
3. Use cash instead of cards: When you buy things with credit cards you tend to spend more as you do not have any restrictions on your credit limit. This can sound advantageous but it is definitely not so. Swiping your cards more often during reckless shopping spree can lead to huge overdue on your credit cards. You can keep a check on this by learning to use cash instead of cards. Put a limit on your spending amount and stick to that limit.
4. Follow a budget plan: Having a budget gives you an idea of the money you need to shell out on your monthly expenses. This can include your college fees, tuition fees, food expenses, travelling expenses, buying stationary items such as books, pens etc. If you add up such expenses you will get an estimate of the money you need to spend each month. Divide your pocket money or income sources in such a way that you can fulfill the needs without taking any new loans.
5. Prioritize your needs: There may be a lot of things that you are planning to buy. But if you spend all your money at once it can lead you to serious debt problems. Instead if you think and prioritize your needs you can work a better financial plan. Decide on buying the things that you need urgently and those that can wait.
6. Avoid impulsive shopping: Impulsive shopping spree is one of the primary reasons why college students get into debts. Since you have a limited budget you should stick to buying things that you comfortably afford. Overspending on your cards due to impulsive shopping will increase your overdue amount unnecessarily. So think twice before you make an unwise purchase.