<p>I got this list for your college students/children to do wisely before they rack up in a pit of credit card debt. (I personally don’t have a credit card.)</p>
<p>*1. The average college credit card interest rate is far in excess of the average credit card rate for working adults.
A common college credit card interest rate is almost 24%, a credit card rate for working adults averages about 14%. A wiser use of your money would be to save or invest it. Use the Credit Card Calculator at MsFinancialSavvy.com to figure out how much money you would save if you invested your credit card interest. </p>
<li><p>College credit card penalties on monthly late payments and/or going over-the-limit can be excessive.
The credit card companies can charge a penalty fee if you are late with a payment and another penalty fee if you go over your limit. College credit card late fees can run 3-4 times higher than those for working adults. One college student told me her monthly payment went from $30 a month to $300 a month, after late payment and over-the-limit penalties were applied. </p></li>
<li><p>Credit card use encourages many college students to purchase items they don’t really need, tossing a credit card on the counter makes purchasing seem easier then using cash.
Don’t be fooled by the ease of tossing a credit card on a counter. When the bills arrive in the mail that ease quickly turns into difficulty, as you have to sift through your checking account to find money for the balance or monthly payment. </p></li>
<li><p>Credit cards charge interest on top of interest.
One reason why you end up paying far in excess for an item when you charge with your credit card rather than paying for it with cash, is because of compounded interest. When you carry your balance from month to month, you will pay interest on the current months balance, every month. To avoid paying compounded interest every month, only charge what you can pay off each month. </p></li>
<li><p>Credit card balances skyrocket quickly when you don’t decide the purchases you will make in advance, and stick to them.
If you feel you must have a credit card, dont take your credit card everywhere you go, so your use will be kept to a minimum. Credit cards should be used sparingly. If you want to go on a vacation, save up the money or borrow it from your parents. If you need new clothes, save up the money, and buy them when you have cash. </p></li>
<li><p>You will have a tendency to spend more if you have more credit at your disposal.
If you own only one credit card at a time, rather than say two or three, you will have a tendency to purchase a lot less. If you purchase up to the limit on your credit card, discipline yourself to pay it off, or at least pay down the balance, until you use it again. But, whatever you do, do not get another credit card so you will not have the tendency to acquire more debt. If you have to charge occasionally, put away the credit card and try to pay off the balance before you use it again. </p></li>
<li><p>College credit cards can ruin your credit for years to come.
It is important that if you obtain a college credit card, you handle it responsibly. After graduation you will need a job, a car, and after a few years, you may consider purchasing a new home. To do all of these things you will need a good credit history. Many employers will obtain a credit history on new employees. Employers want to hire honest employees, and to them, paying your bills on time is one factor that indicates honesty.
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<p><a href=“http://www.blacknews.com/pr/ccdebt.html[/url]”>http://www.blacknews.com/pr/ccdebt.html</a></p>