All About Debts

Whether you are a college student or the parent of a college student, you may have started looking at various types of credit cards for college students. Having a credit card while in college is almost a necessity. Generally, college students do not have much money to spare since they are attending school. Therefore, they need to rely on their parent's financial support or they have to borrow money from a credit card while in school and then pay the borrowed money back later. To choose the right student credit card, however, it is important to understand the differences between different credit cards and the benefits and drawbacks to both.

Debt Help Unsecured Student Credit Cards

Having lower bills in the years following college means less reliance on high interest credit cards and other loans. The average college student carries a whopping 6 credit cards with a total balance over $2100. This means that the $100 credit card purchase for new work attire could cost more than $200 over the 12 months it takes to pay the full balance. Fortunately, smart financial planning, including consolidating education loans, can help students and young professionals live a life free of high interest debts.

Counseling Debt Unsecured student credit cards are those that extend a line of credit to the cardholder. Therefore, you can spend money with the card as a loan and pay the money back later. Since college students tend to have very little credit history, it can be difficult to get a credit card. Obviously, most credit card companies prefer to extend a line of credit to someone with a proven history of paying back loans.

Many lenders see college students as being future income earners, and this is true. Statistics shows that it will take students at least 10 years to pay off their student loans after graduation, and this doesn't include credit cards or other types of loans. By getting these students into debt early, lending companies insure that they will earn residual income for many years to come. Many colleges add to the problem by pushing students into loans instead of offering them grants.

Consolidation Consumer Debt Fortunately, there are a number of credit cards that cater specifically to college students. These companies understand that a person attending college will not have a great deal of established credit history, yet need the help of a credit card to get through college. In addition, the fact that you are attending college gives the companies a reason to believe that you will be responsible about paying back your debt.

Another challenge facing graduates is a high level of credit card debt, often at high interest rates. Prof. Robert Manning of Rochester Institute of Technology, and author of Credit Card Nation, ²⁹⁵ told Congress, "What is striking in the acknowledgement of the credit card industry is that college students are a desirable market because of their ignorance of personal finance and their lack of consumer debt."²⁹⁶

Debt Settlement The greatest benefit to an unsecured student credit card is that you don't have to have money to use it. Therefore, college students that don't have the cash up front can take advantage of the borrowed money to by books, school supplies, and to help pay for living expenses. This can be a lifesaver to someone who is scraping by while in college. In addition, there are a number of unsecured student credit cards available that do not have annual fees or any other types of fees.

Use It (Wisely) Or Lose It Many Americans, including college kids, are in debt over the heads. Before getting your student credit card, be sure to understand everything about credit. Credit cards make it easy, and tempting, to go on a spending spree. But spend more on your college student credit cards than you make you'll quickly find yourself drowning in debt. High interest rates, limit fees can cause your monthly balance to get way out of control. If you can't pay your bills, your credit history will be destroyed. Bad credit can keep you from getting student loans, buying a car, purchasing a home... even getting your dream job.

Debt Free The biggest drawback to an unsecured student credit card is that it is possible to spend beyond your means and acquire a debt that you are unable to overcome. If this happens, or if you are unable to keep up with your payments, your credit can be destroyed. For someone who is working on just getting started in life as an adult, it is not good to get started with a major debt or a big black mark on your credit record. In addition, student credit cards tend to have a higher interest rate than traditional credit cards. Therefore, you may pay a great deal of money in finance charges when borrowing money in this way.

Credit card debt and consumer credit counseling can help lower credit card debt, student loans, and unsecured debt. Get free consolidation and counseling quotes Credit Advice and Resources Credit information and tips to help you find the best deals on credit cards, credit reports, manage your debt, and control your finances. .income tax attorney

Consolidation Debt Service Secured Student Credit Cards

Company Consolidation Debt Secured student credit cards are cards that money is deposited onto ahead of time. In other words, if you don't put your own money on the card before spending the money, you can't use the card. Therefore, secured student credit cards are like a debit card. Secured student credit cards do not look any different from unsecured student credit cards.

Consolidation Debt Online The benefits of secured student credit cards are that you can still have the flexibility offered by carrying a credit card, but you don't have to worry about burying yourself in debt. For parents that are helping their college-age child through college, secured student credit cards are a great way to provide the student with an allowance to help pay for college expenses.

Consolidation Debt Free The major drawback to secured student credit cards is that these cards usually have a large number of fees. Often, there is a fee to set up the account in the first place. Then, there are usually annual fees and maybe even monthly fees. There are also fees associated with depositing, or "loading," money to the card. These fees can be quite expensive.

Debt Problem For more information on how to differentiate between credit cards for college students, Kim Stevens recommends that you visit CreditCardAssist.com.

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