Becoming a credit card holder is a marker of adulthood in our society, but for many parents and students, a rectangular piece of plastic can be the beginning of a financial nightmare. Fortunately some students manage to bypass lurid credit card debt and make it through college with good financial habits.
Good financial habits started early for junior public health major Cathryn Mudrick, who got a credit card 4 years ago. Since Mudrick is currently unemployed her parents pay most of her credit card bill, but she still communicates with them and learns how to manage a credit card. Owning a card has made Mudrick notice one thing about her spending habits.
“By having [a card], you usually spend more money faster than you realize and in a shorter amount of time,” said Mudrick.
Mudrick uses her card for gas, food, books, and of course the occasional clothing purchase. Although having parents that pick up most of the bill is helpful, Mudrick admits that she can see that most card problems can be avoided by simply being aware of the monthly billing statement.
Fortunately for the wired college student, most credit card companies offer online card management. Junior computer science major Emily Berk said that a credit card is not for the weak-willed.
“I’ve always been pretty financially responsible,” said Berk. “You shouldn’t get a credit card if you are an impulsive spender.”
Starting off with small purchases is the best way to inch toward credit, said Berk.
Towson University senior psychology and criminal justice major, La’Sheena Washington argues that credit cards make spending too easy for some.
“[Cards] make it easier to buy stuff you wouldn’t buy if you didn’t have a card. Try to avoid store credit cards because you will forget them at the end of the month and never ever take cash out on your credit card,” advised Washington, who has owned a credit card for the past 6 years.
Unfortunately for financially-strapped students, impulse purchases are not the only things they must manage. In a study released by Sallie Mae, a college-financing company, data revealed undergraduate students are leaning on credit cards more heavily than in recent years.
According to the report, 30 percent of college students put tuition on their credit cards, which is an increase from the 24 percent who charged tuition in 2004. The statistics for education-related supplies, such as textbooks, were also up from 2004. In 2009, 92 percent used their credit card for direct education supplies. The study also revealed that 84 percent of undergraduate students had at least one credit card, and only 17 percent of card holders managed to pay off their balance at the end of the month. A mere one percent was as fortunate as Mudrick to have assistance to pay off monthly balances.