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The Student Credit Card Debt Trap

Student credit card debt has reached an epidemic in the U.S. with more and more college students leaving school with thousands of dollars of credit card debt to their name.

Usually the student’s credit card debt is incurred by the student charging things that he shouldn’t charge for. For a student, having a credit card is seductive. It gives him the feeling of having free money. It’s only when the credit card notices begin to come in that the student realizes that he has to actually pay the money back. Since many students are not exactly flush with cash, it’s usually only a matter of time before the bills are late being paid and late charges and interest charges start to be tacked onto the credit card bill. Before too long the student is deep in debt.

Many parents have no idea that when their son or daughter goes off to school that their kid is about to become a prime target of the credit card industry. The dirty little secret of the credit card industry is the marketing of credit cards to students. Credit card companies know that most students are unemployed and have little income, yet they encourage students to incur credit card debt. It’s an easy way to get their hooks into a new and fresh demographic. Credit card companies also know that if they recruit a student while he is in school, there’s a better than even chance that he will rapidly build up a credit card balance.

They know that a credit card is the first chance that many students have had in attempting to deal with credit and don’t yet know the basics of interest rates, minimum payments, late payments, and so on.

Parents can act preemptively to help to limit the student credit card debt that teenagers incurs by getting them a credit card before they go to college but with a pre-determined charge limit.

Another way that parents can help is to let their teenagers know that if they are about to incur credit card debt, which they will have to repay after graduation, that they’re better off coming to you for a loan or help with other alternatives to help them with their purchase.

Students who do not want to incur student credit card debt, but whose families cannot afford to contribute to their expenses, may be able to use student loans to finance some of their living expenses. Meet with the financial aid office at your college or university to find out what kind of financial assistance is available for students who want to avoid incurring student credit card debt. You may find that you can borrow funds in addition to your expenses for tuition, fees, and books on your student loans. Student loans are generally financed at a lower interest rate than credit card debt, and some tax deductions may be available when you repay your student loans. Consult a licensed tax preparer to answer any questions you have about reducing student credit card debt by borrowing more money on your student loans.

Another way a student can avoid incurring student credit card debt is to get a part-time job. In the long term, getting a part time job to pay for his purchases will serve him better than leaving college with a huge credit card bill. Many colleges post part-time job opportunities that will not interfere with the student’s academic schedule. And on the bright side, some of these part time opportunities actually lead to full time jobs when the student graduates.

Credit Card Debt Settlement:
If you’re struggling financially, the thought of making a credit card debt settlement may seem like a good idea. Before you do, however, there are some things that you should know.

Credit Card Debt Solutions
Credit card debt is one of the worse types of debts to have, but once you’re in debt, it can sometimes be difficult to choose from among the many so called credit card debt solutions out there.

Credit Card Debt Statistics
According to credit card debt statistics, the average American is close to drowning in a sea of debt.

How Not To Pay Your Credit Card Debt – Only A Dream
If you’re wondering how not to pay your credit card debt, you should realize that unless you’re a high roller, creditors will enact some sort of price, even if non-monetary, in return for forgiving your debt.


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Copyright – 2009 student credit card debt