Student Face Credit-card Debt Growing

You have the letter in the mail, the "free" sandwiches at Subway, and all other types of ads in your face pushed for credit cards. With such aggressive marketing techniques, it is not surprising that St. Paul Pioneer Press reported that 43% of young people get their first experience of credit, while their first year of college. Another 23% of students get their first credit card before even entering the field of post-secondary education.

Three of the four college students now have credit cards, and the average balance on the cards are a terrible $ 1585, said Nellie Mae. This level of debt increases each year, but what is the cause? Many students not enrolled for the card free money, or build gradually the balance of hours without realizing it until they have $ 10,000 in card debt credit.

Some colleges are taking steps to keep students in check credit, credit card, by preventing companies try to offer maps of the campus and through educational campaigns to teach students how to use their credit wisely and responsibly. One such program at Smith College, a small school in Northampton, Massachusetts, offers a series of workshops on finance staff to ensure students use their credit properly. There are even schools now offer courses in personal finances to ensure students on track. One such program, Financial Peace for the next generation, teaches students to save, spend responsibly and to pay cash for most everything.

Many universities do not offer specific program to educate students about finances in addition to his normal classes, but here are some tips to keep your credit in check. The first and most obvious piece of advice to avoid the nightmare of having a debt of credit card is simply not to get a credit card. Since most students with large credit card debt build slowly overtime with impulse purchases, and avoid using credit cards for small impulse will help prevent you from becoming more balanced. If you pay your balance at the end of the month, you will have no problems. If you can not pay the balance at the end of the month, at least the minimum payment, otherwise, the issuance of credit cards can increase your interest rate to nearly 30%! Never sign a credit card to just get something free, such as pizza and Subway sandwiches to be passed in an hour anyway. You really only need one, if applicable, credit cards.

Finally, create a budget and stick to it. At the beginning of each month, list all your income and expenses for this month, and stick to it. Make your money work for you, not to disappear from pay check to pay!