Credit cards aren't literally killing us but they are killing our bank accounts and credit. According to nerdwallet.com $733 billion is total debt owed by U.S. consumers. It is crazy how much people just put it on credit and now in so much debt they have to claim bankrupt. Well us college students are already in hundreds of thousands of dollars in debt from college loans, books, housing etc. So, I am going to give you guys 6 tips that I try and do to keep myself from killing myself with credit cards.
1. Understand the terms of the card.
Make sure before signing any papers or anything know the interest rate, the fees and the payment schedule. Know what you are getting into. If you don't understand see if someone with a credit card already can explain to you what everything means. It is better to ask questions then accidentally have a high interest rate and end up paying a lot more. A cool thing you can do is go online and look up a credit card calculator and that will be able to help you!
2. Beware of 0 percent teaser rates.
While 0 percent interest sounds super awesome, the offer may tempt you to spend more than you can afford. When the introductory rate is over, the interest rate will swell and so will your balance. Know what the "go-to-rate" is. So make sure you read that fine print It might say 0% interest for the first 5 months and thats it. Read that print thats underneath saying the rate after that deal.
3. Set a budget for yourself.
Set a personal budget that you really think is reasonable. Don't set it higher then you make a month because then that is enabling yourself to make those spur of the moment decisions to buy that video game or pair of shoes you really wanted. Say no, try and have some self control and wait until you have the money then get them. if you start spending more than you make you are going to put your self in debt. Save yourself and spend wisely.
4. Pay on time.
You will start to build a good credit history if you pay on time. Building a credit history will help you in the long run after college when you have to get a car if you don't have one, or when it comes time in life to get a house or an apartment. I think it is great to have a credit card for this reason because you are able to control your credit score if you are smart.
5. Pay in full.
To avoid costly interest charges, you should try to pay your bill in full each month. Again like the tip above this is a great way to build your credit history after all those college loans start to hit the credit score.
6. Don't go over the limit.
If you spend too much, you'll incur additional fees for spending more credit than you have been allotted. This is what gets the most people in trouble is when they decided to go crazy at the mall or around Christmas time. They start spending this money they don't have the interest keeps going up and they can't pay it all so it's hard to keep up with and eventually this is where the credit card will win and kill your bank.
So, do yourself a favor and take these tips when thinking about getting a credit card I mean I don't know about you but I wouldn't want to pay off more than I had too.
