Smart ways for college students to avoid credit card debt

If you are a student in college, it might seem impossible to pay more than the minimum payment amount on your credit cards. Again, if you do not pay more than the minimum payment, the interest on your credit card debt keeps on accumulating and the net debt can rise to outrageous amount. If you are burdened with credit cards that have overwhelming balances, you might consider credit card consolidation. Consolidating your credit card debt lowers your monthly bills and saves you a great deal of money. However, prevention is better than cure. It is better to try to prevent amassing debt than living with the burden of soaring amounts of debt. Here are few simple tips on how to have a good college life without killing yourself financially:

• Learning to use credit cards responsibly is a blessing: If you are a college student, one credit card should be enough for you. The more cards you have, the more you tend to spend beyond your means. Initially, just have one credit card and practice paying it off. If after a year or two you are comfortable managing your credit you may consider getting one more card. This might be useful in case of emergency and can also help you improve your credit score if you manage your credit cards responsibly

• Do not compromise your basic financial needs for the sake of entertainment: For example, if you have to make a choice between making a loan payment by its due date and going out with your friends, remain at home. It is essential to have a good time, but paying for your basic needs like rent, electricity and meeting loan payments on time, is far more important.

• Avoid taking alcohol: There are various reasons to enjoy a soft drink instead of alcohol. It is not only healthier and less expensive, but also allows you to drive home safely.

• Let your friends get their own credit card: If you let your friends use your credit card, you are responsible for paying the charges regardless of the fact that they pay you back or not. Remember it was your signature on the credit card application and not your friends’. So it is better that you keep your finances and friendships in two separate boxes.

• Invite your friends for dinner instead of eating out: We generally like to go out so that we can spend some quality time with our friends. You can have just as good a time at your place and if you ask everyone to bring a side dish, the cost is also minimal. Also you don’t have other expenses on transportation, tips or taxes.