The dream of every student is getting accepted to their dream career and their dream college. When they get allowed, the first few weeks will be full of mail notifications full of credit card applications. As a freshman, there are certain things that you need to understand about student credit card debt.
In the current times, credit has been rapidly growing, and it has been made available to almost everyone, especially Hispanic college students. They do not know that as much as these cards help out, they can land them in serious financial trouble.
We cannot stress this enough, apply for as many Hispanic Scholarships as you can before applying for loans.
Most parents prefer giving their college kids credit cards to help them in cases of emergencies. Most college emergencies are associated with fun and stress-relieving moments, but the initial idea parents have in mind is the payment of school fees.
Student loans are an issue that the students tend to forget that they have to repay after school. When they access such money using their credit card, the chances of misusing the money are usually high.
With a credit card, most students influence each other to apply for loans from the bank that issued them with this card. Surprisingly enough, they qualify for even high loans of almost $1000.
Being a student is sometimes tricky, especially in resisting some issues. Due to peer influence, students access the credits, and repayment becomes an area of concern. For instance, a student loan of an interest rate of 18% with a payment period of one year is likely going to delay this repayment.
The reason for delays is possibly the fear of telling a parent that the loan accessed is for specific purposes. Loans are the reason why most Hispanics in college end up with student credit card debt. Many don’t realize the difference in annual percentage rates.
Parents should control their kids’ credit cards due to the emergence of such issues. The issue of student debt has been an area of concern in colleges because most credit card companies use them for marketing their services. They are the target markets because, as a college student, it’s reasonable to run low on money. The main thing every student should learn is how they can manage the little cash that they get from their parents.
Some credit card management tips to avoid student’s credit card debts include:
- Always have one main credit card for necessary uses and avoid minor purchases. Keeping in mind that you are just a student and you are not yet employed will help curb this issue of unnecessary bulk buying, especially for ladies. Link above is a Southwest affiliate link, we may get credit for posting but you get points toward free flights 🙂
- When shopping, ensure that you have carried only one credit card to control the number of purchases you will make. Beware of crossing the limits when spending.
- Avoid using your credit card to pay for tuition so that you can minimize your debt.
- Always keep records of expenses and avoid impulse purchasing. Keeping records will help reduce the high-interest rates that come with making purchases unnecessarily.
- Lastly, avoid being among lazy students who pay for their assignments to be done by other students.