Credit Card Among Students

Many have been concerned that students will use credit unwisely because of their financial inexperience and suffer the long-term consequences of carrying high debt. This is due to easy to get the credit card, since 18 year-olds in most states are eligible for a credit card without parental consent or employment. Current study has shown that the number of students owning a credit card as well as the amount of credit card debt held by students has risen in the last couple of years. 80 When viewed credit card usage by students in positive way, we can cited the advantages of using a credit card by students are for establishing credit, medical or family-related emergencies. Also making travel arrangements and reservations, payment conveniences such as shopping by telephone and the Internet. Indeed, according to research report showed that more students used their credit card for routine personal expenses rather than used it for occasional or emergency expenses. Being a students, they have no much concern on the utilization of credit card due to most of the payment are made by their families. So, they don’t really care on how much they spend on their credit card. This is how the debt gets started, then become disadvantages. There are disadvantages, however, to using credit. When carry a credit card, it is easy to buy beyond the means, to spend so much that cannot meet the bill when it is due. For student, carry a credit card, it is very easy to buy on impulse and forget they are spending future income, money that do not yet have. Moreover, when they only pay the minimum balance each month, this will take to many years to pay off the balance. Interest charges really add up to increase significantly the "bottom line" of the total of what they must pay . The disadvantages of using a credit card can over than its advantages. This especially for students who have student loans and credit card debt. Students who have not wisely planned for their financial, may facing a problem to handle payments for credit cards, student loans, and living expenses after complete their studies. Inability to make payment and excessive debt can cause the poor credit reports, and give stuck for future plans such as buying a car or own a house. In extreme cases, high debt levels could lead to personal bankruptcy.

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