Most college students nowadays will tell you that the cost of living has risen and it is hard to get by financially with the day to day expenses of life. Tuition for both private as well as public schools continues to be on the rise and shows absolutely no signs of slowing down or stopping as the economy continues to grow. On top of this books have become more expensive and daily living expenses like food, gas, and rental prices are steadily growing higher and higher as the years pass by. One of the primary methods that college students on a budget have used for daily purchases and emergency purchases are by using credit and savings. While a credit card can seem like a very simple tool for a struggling college student it can also enable them to go down the deep and slippery depths of debt. It is best for college students to have a strict budget and a savings amount to pull from but not everyone will have this opportunity available to them.

Within this article, we will promote more financial responsibility arming college students for life by following the four pieces of advice that we have listed below to lower student credit card debt. Being a college student does not mean that you have to live a life of debt. If you live on a strict budget and follow it and do what you can to find employment and bring a savings amount with your school can be much easier and less stressful We recommend that you try to follow these four suggestions below to reduce your debts and expenses while you are spending time at college.

1. College students are increasingly going into higher rates of debt and this is a fact. A recent study proved that credit debt among college students is at its highest and students who are not on a budget are in for real trouble. Students with cards are now graduating with thousands of dollars in debt on average because they have not lived on a tight budget. A large reason for the increase in credit debt is the ability for new college students to easily acquire new credit cards and not understanding how they work and everything signing up for one entails.

2. An idea to save money is to follow a budget to stay out of debt or at least lower it. Some students are now choosing to go the cash-only route in their daily spending habits. They no longer rely on credit or cards and instead use cash or cash equivalent currency such as debit cards, checks, and digital currency. The only problem with this idea is that without a credit card a student has no backup fund in case of an emergency or if a mandatory purchase must be made however these are two viable options that do work.

3. Another option students can use is to co-sign for credit with a parent. This is an alternative to going cash only. This choice is to co-sign with a parent or another adult for a line of credit or a credit card. The downside is that the student still ends up with a line of credit or the stress related to a credit card. What this means is that if the student does not stick to a budget they can incur mounting credit card debt even with another co-signer.

4. Some students on a budget choose to use prepaid debit and credit cards for daily uses. This is another option for students. Some college students will go ahead and apply for a card but will use it only in emergency situations. For day-to-day usage, the student can purchase a prepaid credit card. These cards require no application process and they do not tie in with the student’s credit in any form. You just purchase the credit card for a certain amount and then use it exactly like a credit card. These forms of prepaid credit are great for students on a budget and can be used wherever Visa, Mastercard or American Express are accepted.

If a student does not have savings then credit can be a real problem for college students that are trying to stay out of debt. You can try one of these four options if living on savings is not a viable option. Be very careful with credit and do your best to live on a budget to maximize learning in college with less stress and fewer debts.

2 Replies to “The Top 4 College Student Credit Card Debt Tips”

  1. I never recommend co-signing, but that’s just because I’ve heard some crazy horror stories. However, good tip on staying on using a prepaid card!

    1. You’re right, Kayla. Because , if someone agrees to co-sign with another student, the debt collectors would come for them too, if they come for the original signer. And if you have an 800 credit score your credit score will probably plummet by about 200 points to a credit score of 600. And also, if you co-sign with someone, you can become responsible for thousands of dollars of debt, just because you co-signed with that student.. So it’s best not to ever co-sign with anyone.

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