Think Before You Swipe: How Not To Drown In Credit Card Debt
October 2, 2014
By: Leanne DeMars
For those of us not born with a silver spoon in our mouths, receiving the “New Billing Statement Issued” e-mail from Salem State feels like a nightmare. Our wallets tremble with fear at the thought of being emptied yet again. Though we have grown up under the impression that credit cards should be avoided like the plague, the temptation to apply for one continues to grow. Credit card companies prey on college students, knowing we are desperate for money. They send out piles of applications through the mail as bait, hoping to catch a bite from a hungry student. Even though it may be true that credit cards can get you into trouble if not used responsibly, you do need to establish credit if you want to buy a car, house, etc.
Before opening up an account with the first company you find, do some research. Look at different company websites to see which card is the best fit for your lifestyle. Keep in mind that you should know your APR (Annual Percentage Rate), aka how much interest the credit card company is charging you. Be sure you are aware of this especially when making a purchase on credit. That way you know if you really can afford it. The best way to avoid credit card debt is to never buy something on credit unless you know you can pay for it. If rash decisions are made when shopping with your new card, you will become trapped in a void of only making the minimum payment forever.
Unless you are a shopaholic, owning a credit card can be very beneficial to us money-starved college kids. Remember, you do not need that Louis Vuitton bag for school (no matter how pretty). Use your card for real emergencies and make an effort to pay your bill as soon as possible. Doing so will help you sleep better at night and will prevent your phone from filling up with the missed calls of bill collectors. One of the best ways to avoid credit card debt is to not tempt yourself with items you do not need. Cut back on the shopping, unless it is for necessities. Take advantage of discounts for college students, clip coupons as if you are a single mother with six kids, and gather up as many free samples as you can. If you really have a shopping problem, stay far away from credit cards and find a well-paying job to suit your needs.
Contributor’s note: Leanne DeMars is a Business Major with a concentration in Management.