Some parents send their children to
college with a credit card to use for "emergency" expenses and take
full responsibility for the payment of the charges that will ensue. This, of
course, makes sense, since the college student is not employed, more likely
than not. Mom and Dad are often in for a big surprise when the bill comes in
the mail.
It happens innocently, at first.
"I need a software program to assist me with this class; I'll use the
credit card." "I'll pick up these supplies for my classes while they
are on sale. Since they are on sale, I can double up on them, too. Mom will be
proud of my thriftiness!" Then the not so urgent things begin creeping in;
"Man, I am really burning the midnight oil on this project, I need a pizza
to help me study." "All my friends are going out on the town. I
really want to go with them. Mom will not mind if I use the card this once for
something not related to my school work."
The good intentioned use of the card
by the college student soon becomes an out of control monster. Fortunately,
college student cards come with a reasonably low limit and a low interest rate
as well. Although the college student cannot get into the same degree of
trouble with their card as they would be able to with other credit cards, they
can still max the card out with non-emergent charges.
For the college student that is
footing this debt without the help of parents, this can be devastating. Now he/she
will have the burden of not only his/her student loans, but of the credit card
debt as well.
If our young college student accepts
the "education" he/she gets from using credit, he/she will understand
that the cure to credit card debt is to treat the card the same as any other
credit card. Use it only for necessity, realizing that what you purchase today
with the card comes due at the end of the month for cash.
College student credit, in the form
of credit cards, is really an educational tool for learning credit lessons that
will carry over into the world beyond college. One of those lessons is that you
do not obtain another credit card because you have reached your limit on the
current one. Another lesson is that debt is debt, whether in the form of credit
card debt, or obtaining loans to cover "extra" expenses. In the end,
the piper receives his due. Another way to help you stay on track is to check
your credit score regularly.
Barbara Sayers is an accomplished,
nationally well respected, writer in many different venues. Her passion is
helping others to succeed, prosper, get out of debt, improve their credit
scores, and plan for their future, as well as their family's, in meaningful
ways.. You can take advantage of her passion and go to CreditReport.com to get
your free credit score, Have questions for Barb? Send her a message at barbsfreecreditscoreoffer@gmail.com.
