Credit card companies have learned that most students earn very little income and thus market lots of credit cards specifically to them, trying to get them to rack up credit card debt. Students should do all they can to avoid getting into credit card debt.
Credit Card Debt: Alternatives for Students
Despite the ploys that the credit card companies use in an attempt to snag students, there are ways for students to effectively prevent themselves from getting into credit card debt while still being able to care for all their necessary expenses related to their college education.
Some students have parents or other family members who have disposable income they can lend to the student. Be honest when you communicate with your family about your expenses and your wish to avoid student credit card debt. Your parents may be able to help you rework your budget and find ways to save money. If they know you are about to incur credit card debt, which you will have to repay after graduation, they are likely to want to help you avoid the burden of student credit card debt by lending you money at a favorable rate of return.
Students can also use student loans to pay for expenses if their family is not able to support them financially. University financial aid offices are sure to provide you with some potential alternatives to racking up 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.
You can get a part-time job if you need to boost you income in order to stay out of debt associated with student credit cards. Colleges often offer part-time jobs that you may be able to get that will not conflict with your class schedule. A part-time job might even lead to a full-time job after you have graduated.
It would be wise on your part to consider all possible alternatives before taking on student credit card debt.