Statistics show over 75 percent of
college students have a credit card,
making it easy for them to pay for
beer, food, books, or a fun night out.
Most use credit cards figuring they
will just pay the money back later.
Unfortunately, they don’t realize
that they are spending more than they
have, which puts them in a bad position
later.
Credit card companies go to great
lengths to pull students in. Some set
up booths and tables at college campuses.
They may go as far as telling
students they offer free “giveaways”
to anyone signing up.
They are banking on the assumption
that students will be unable to pay
their bill on time as a result of the skyhigh
interest rate. In most cases, this is
what happens and many students get
in way over their heads.
Students at Bucks are greatly affected
by this. “I was offered a couple
credit cards in the past few years and
I decided to accept them. Then I
would always spend money not realizing
I would not be able to pay it
back later, and I did not realize how
high the interest rates are, and really I
am paying so much more money than
I actually spent,” one student who
wished to remain anonymous said.
“It is definitely one of my biggest
regrets and wish I could have used it
more wisely,” the student added.
Clearly, this is how credit card companies
make money.
It is possible to use a credit card
wisely, but it takes discipline.
Banking experts say the best way to
stay out of credit card debt is to pay
the entire balance as soon as possible.
Part of being disciplined is having a
budget and figuring out how much
money will be coming in each month.
This will determine how much money
can be spent. The most logical thing
to do is save the card for emergencies.
If students do not follow these
seemingly simple instructions, credit
card debt can hang over their heads
like a looming black cloud for a very
long time.