Wednesday, June 13, 2007

Will having credit card in college make your life hell?

My first credit card experience is almost 19 years old. The allure of "free money" sometimes just too much for 18/19 year old kid that really doesn't understand what getting into debt really means. I had a number of college friends (and myself a few times) who whipped out the credit card, many times and said Dinner is on me.

10 ways that credit card debt can turn your college life into hell It might make your life difficult, but not hellish. Some of the reasons are a little too far out for me.

Some shout outs

Credit card debt make you get a job during college.

What is wrong with working a part-time job during college. I think it gives you a little bit of responsibility while working in college. It may make you think more about the value of a dollar. If you are working 15-20 hours a week, you may not be using the credit card as much. I did work all 4 years in school, while it didn't necessarily stop me from using the credit card, it kept me busier than I would have been partying.

Huge amount of credit card debt in college can cause sore relationships
The reason could be lack of money, lack of proper financial management, or simply not being able to buy enough presents to your girlfriend. My money was pretty private until my Mom found my credit card statement. She was pretty upset with me that I got to a balance over almost $2,000. I don't remember it causing too many problems with friends or my boyfriend at the time-it never really came up. Of course, once you are in serious relationship and looking towards marriage, the credit card debt can hurt the relationship.

Credit card debt affects the studies seriously.

It you are stressing about it, or you have a lack of concentration about it. Your grades may suffer, but to totally fail out of college. I know I was a little stressed out about it especially after my mom found my statements, but it never threw me over the edge and made me want to quit school.

My final thoughts is that high school kids and college students should take classes on personal finance to avoid get trapped into credit card hell. Once again I recommend picking up this book by Dave Ramsey called The Total Money Makeover: A Proven Plan for Financial Fitness

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