Dealing with Student Credit Cards Debt

Student Credit Cards debt is a problem faced by many college students in the U.S., U.K. and abroad. Many young college students have never owned a credit card before and the student may not be properly educated on credit card debt. Often, these students will use the credit card carelessly, racking up high premiums and interest rates, while being quite unaware of the fact that they are doing so, until they suddenly find themselves in debt to the credit card, by which time it may be too late to save their credit. Thus, many young college students today are finding themselves with bad credit before they even graduate from college. This student credit card debt can make it very hard for the young man or woman just starting out, as they already have one mark against them.

Student credit cards debt can be prevented, however, if you take the proper steps before getting your college student their first credit card. You should, first, be aware that many student credit cards will charge higher premiums for college students then for those with established credit. It's imperative that you look into the different available credit cards, especially looking at how much the premiums are.

It is also just as imperative that you discuss proper spending habits with your college student before they obtain their credit card. Most credit card experts agree that student credit card debt can be eliminated by educating the students on the nature of credit card use, such as the card should only be used for emergencies and necessities that cannot be purchased with cash. The student should learn that the credit card is not a replacement for money and that by using the credit card, they are incurring debt which carries with it a premium.

Another step you may take to prevent student credit card debt is to purchase a secured credit card for your college student. A secured credit card will allow you to manage your student’s monthly spending allowance, and usually offer much lower premiums then unsecured cards. You'll also find that obtaining a secured credit card is much easier for your student, and often the student can obtain one themselves, without needing a co-signer or credit checks. The best thing about secured credit cards, as far as student credit card debt goes, is that it is nearly impossible to get into debt with a secured credit card, as the spending is limited to available funds. However, even with a secured credit card, a student still needs to be advised on proper spending and any accrued debt should be paid off immediately at the end of the month, so as not to carry over debt from one month to another.

There are many different preventive steps you can take to help you college kid survive college without incurring student credit card debt. Failing to take the proper precautions and educating your college student on how to use a credit card could seriously mark your Childs future credit, causing them possible financial set-backs in the future. This is why it is so important to take every means necessary to ensure that such a situation doesn't happen. A credit card can be a blessing to young college students, when properly guided toward its use and misuses and can teach a young man or woman many different lessons that they can use later in life.

However, if not properly guided, this blessing can turn into a nightmare for you and your student in the form of student credit card debt. Now that you know how you can prevent this from happening, you can take the proper steps and be secure in the knowledge that you not only are helping your child by providing a necessary backup in case of emergencies, but also teaching him or her valuable credit lessons that they can use in their lives after they graduate.