How to Avoid Student Credit Card Debt

This guest post was written by Elizabeth C. She is the main editor at FindCollegeCards, a site helping students pick out credit cards, as well as give them advice.

Student credit card debt seems to go up year after year, but as Congress tries to crack down on how credit card companies handle applications, it doesn’t mean that you can’t get away from it. While many students won’t read an, “avoid” based article, they generally come running when they are head over heels in debt.



I wanted to give you some simple, yet effective tips that you can use, when you want to avoid debt in the near future.

#1 You know if you’re good with credit cards – If you’re new to credit cards, you’re going to find that you will know if you’re good with them, or not. If you don’t pay your card off in full each month, you may want to explore other options, as you will find that interest rates can kill you.

#2 Credit cards are for rewards or emergencies – The only way I use credit cards is if I want rewards, or I really need it for an emergency payment. I also find that it is easier, and safer to use than cash. If you decide that you want to carry one around, it isn’t designed for those “fun” expenses that you can’t afford at the moment.

#3 Treat it like cash - A credit card needs to be treated like cash, and so many people don’t treat it like this. Instead, many spend as if it is monopoly money. You will want to treat it as it’s money in your pocket. The goal here is to spend what you can afford.

#4 Don’t miss payments - Missing payments not only will affect your credit score, it’s going to hurt you in terms of fees. Always try your best to pay the minimum payments, as you will find that generally, it’s only a portion of what your balance is. If you fail to miss the payments, you’re going to be paying fees on top of your interest rates.

#5 Avoid taking cash out – Never use your card like an ATM. While you can do cash advances, the interest rates on these transactions are rather high. You’re going to want to make sure that you look for alternative loan options, before taking out money via your credit card.

There are many signs that will tell you if you’re going to get into debt. If you’re already questioning your balance, it’s best to cut up your card, and use a debit card. Credit cards aren’t made for everyone. If you’re responsible with your card, you will find that you can reap many rewards, as well as many other perks.