How to Keep a Tab on Your Student Card
The modern generation always seems to be in a mad rush, this includes the finances too. It seems that they always want everything in the current moment and canâ€™t wait to get anything. They often seem to be disregarding any future planning or security. This tendency is best projected by the huge credit card debt that people are struggling with across the world and especially in India. The modern day philosophy of buying now, paying later has engulfed the whole economy and most people are in huge debt, some are already bankrupt or heading towards it. The things were going very well till the subprime crisis hit us and most people are badly affected, lost jobs, lost homes and came under real pressure of debt and mortgage. In fact the dependence on credit is so widespread that the young people are in this problem too. The cc for students are issued to the students with a view of taking care of their expenses and have special offers that are attractive to the younger generation and meets their specific needs. They are also given add on cards by the parents, but this also adds on to the parentâ€™s responsibility of guiding the youngsters ho they should handle the money. Unless the teenagers and young adults are given the right perspective, it will be very easy at this age to get into reckless spending habits and uncontrolled debt. These are some of the principles that should be followed by all, and especially the students. Credit cards or emergencies only: If we inculcate a habit of using the credit cards only. The cc for students should be used for any emergency purchases only and not used for everyday use. Timely bill payment: The habit of paying the minimum balance is an unhealthy one. As far as possible, one should pay off the outstanding balance within the due date, so that the cost of interest does not mount up. One can even look for low interest cards and use balance transfer cc facilities to lower bills. Stay well within the credit limit: One should not exceed the limit at any cost and in fact try to stay well within the credit limit of the card. Exceeding the limit attracts many charges and fees on the outstanding credit card balance. This adds to the debt burden and will take the user more time to pay off the debt.
Pay attention to the credit card bills. Every bill should be scrutinized carefully to check if the charges and fees are correct. Ensure that additional fees and charges or incorrect entries are there in the bill. Avoid cash advances on the student credit cards. Though the facility is available on all cards with varying limits but this is not a wise decision as this calls for very steep interest rates. In a situation where emergency cash is needed it is better to avail personal loans or other sources of funding rather than credit card cash advance which is one of the most expensive loans available in the market. It is also better to use balance transfer cc to lower your credit card interest These are some of the ways that students can keep a tab on their expenses and credit card bills and avoid the danger of getting sucked into high amounts of debt early on in their life.