Leaving home for college is a turning point in your life. Suddenly you have all kinds of freedom--the freedom to stay out late, skip class if you want to, and make friends with people you'd never dream of introducing to your parents. You'll probably have the freedom to get a credit card, too, which can be great for emergencies or establishing credit--but pretty scary if you over exercise your freedom to spend.
"We encourage college students to be aware of the dangers as well as the advantages of using credit cards while in school, " said Suzanne Boas, Consumer Credit Counseling Service of Atlanta president. "It's easy to get credit cards these days, but if they are overused, students and their parents will find it's not so easy to pay the bills."
College students may frequently encounter credit card offers on campus and in their everyday activities. Credit issuers offer cards to students through the mail, campus displays, tables at athletic events, college publications, and flyers in bookstores. In most states, students can apply for and receive cards without their parents' consent. With so many outlets for creditors to reach students and few restrictions, credit card use among college students has steadily increased.
The United States General Accounting Office reports that 64 percent of college students have at least one credit card. Among those, 42 percent do not pay their bill in full each month and carry an average balance of $577. Considering about half of the country's college students graduate with $19,400 in student loan debt, credit card payments can be an added burden.
Source: Crown Financial Ministries | CCCS Atlanta
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