“Credit Card Debt” & “College Students” – It seems as though these two phrases are synonymous with each other. Over 80% of students on campus these days have at least one credit card to help cover miscellaneous expenses they encounter during their college years. Unfortunately, only 17% of those students have the ability to pay those credit cards off each month. The following infographic (created by Green Dot) provides a deep dive into how college students are using credit cards, what their typical spend rate is and what the average amount of debt each one is maintaining on their credit card. Take a look at the information and see what you think.
CheapScholar’s Advice On College Students & Credit Cards:
I think that every college student should have one credit card available that they can use in the event of an emergency. I also don’t think it is a bad idea to utilize a credit card for online purchases, while traveling, or any instance in which you would not want to utilize a debit card and potentially provide scammers with direct access to your checking account funds… That being said, it is imperative that you are able to pay your credit card off each month to avoid fees and interest charges. If you are a person that doesn’t have self-control when it comes to spending and following a budget, you can still get a credit card for emergency purposes but I recommend freezing it in a block of ice. Hopefully the effort you have to put into retrieving it (and the time involved) will make you really think about whether the intended purchase is really necessary… Here is an article that provides some good advice on utilizing a credit card during your college years.