College Student Misusing Credit Cards

Credit Availability

There is no shortage of credit card companies that are willing to provide credit cards to college students, and many of these companies do so at incredibly high interest rates. Unless college students had the distinct advantage of having parents who taught them the intricacies behind credit management it is all too easy to get carried away. Credit card debt can pile up quickly, and even if the student cardholder has the noble intentions of paying off the balance each month the actual amount of the debt can come as a shock when the monthly credit card statement arrives.

College students have quick access to credit card applications marketed directly to students. Credit card issuers include college-friendly perks such as discounts to popular clothing stores or access to VIP concert tickets. Some credit card issuers furnish students with cards featuring college mascot logos. Applications are prevalent on campus and online. Many credit card issuers require no minimum income and do not require co-signers; this means mom and dad don't even get the chance to try to talk them out of getting a credit card.

Misuse of Credit Cards

Varying scenarios occur with a college student misusing credit cards. Although each instance is different, oftentimes credit card misuse among college students is a result of:

• The student splurges on purchases and is shocked to find out how much is owed.
• The student misses payments and suddenly has a gargantuan interest rate.
• The student has an unexpected expense and has no choice but to put it on the card.

College is an interesting transition time within a person's life. Students are considered adults, yet they are not considered members of the real world until graduation. They have the urge to buy nice things and pick up the restaurant tab once in a while, but credit cards make it all too easy to indulge when instead students should be counting their pennies.

Results of College Student Misusing Credit Cards

Credit card debt among college students is a major issue, resulting in many more than simple phone calls to parents for financial help. There are documented cases of:

• College students graduating with thousands of dollars in credit card debt (in addition to student loans).
• College students dropping out of college altogether to get a full-time job in order to pay credit card bills.
• College students becoming clinically depressed, with looming credit card debt cited as a main factor.
• College students committing suicide, with credit card debt blamed as a contributing factor.

Not every college student falls into this trap. Some students avoid credit cards entirely while enrolled in school while other students apply for credit cards but use them responsibly. One major deciding factor is how much financial education the students received from parents while growing up. If students are taught at a young age that credit cards must be used responsibly then they are less likely to allow their usage to spiral out of control.

Help for Students

If you are a college student and find yourself intimidated by your credit card debt, there are resources available to you:

1. Talk to your parents about your situation. Your debt may not be as huge as you think it is, and they may be able to assist you.
2. Contact your credit card company. You need to stay in touch with your creditors and let them know the status of your next payment. If you are proactive and contact the company before the payment is late, they may be able to work with you on a reduced payment plan.
3. Consider a Consumer Credit Counseling Service, which is a place that works with your creditors to lower your monthly payments while also teaching you budgeting techniques so that this situation doesn't happen again. Be aware, however, that enrollment in CCCS can damage your credit score.

You should be able to enjoy your college experience without the worry of credit card debt. If your debt has gotten out of control then seek help before it gets any worse.