The crisis of credit card debt is growing on college campuses everywhere. Many students do not realize how dangerous credit cards can be if not handled responsibly. With high interest charges and extra fees, it is easy for credit card debt to quickly grow out of control. Every dollar you charge now must be repaid with interest and other fees. Remember that every time you use your credit card you are basically taking out a short-term loan.
Credit cards can be an effective financial tool when used wisely. They can be useful for a number of situations including emergencies, but when you sign up for a credit card you are taking on a big responsibility. It is important to understand this obligation completely so that you can avoid damaging your credit history.
Here are some tips to help you use credit cards responsibly:
- Limit the number of credit cards you have.
- Do not apply for a credit card for the wrong reasons. Free gifts or discounts for signing up aren’t worth the consequences.
- Always pay the monthly balance in full before the due date. Paying what you owe each month will save you from paying interest charges.
- Be aware of how much you owe at all times to make sure you are not overspending.
- Review your billing statement carefully each month to be sure you are billed correctly.
- Keep track of your card and store it in a safe place. Do not share your account number with anyone.
- Contact your credit card company with questions regarding your account. Make sure they also know how to reach you by mail and phone.
- If your spending is getting out of control, stop using your credit cards and seek help. Relying on your credit card to help pay for basic living expenses or using it to finance a lifestyle you can’t afford are serious signs of credit card misuse.