While college offers new experiences, higher learning, and independence, it also can put you on a fast track to debt—especially if you’ve taken out student loans. From managing meals to buying textbooks, living expenses can get pricey, making opening a credit card tempting. However, with 42.1% of undergraduates saying they had credit card debt in a 2023 survey, the pitfalls of credit cards can damage your credit, which is no way to start your career.
To avoid credit card debt, here are five ways to help you stay out of credit card debt in college:
1. Budget
Making a budget doesn’t have to be complex, especially with the number of budgeting apps available. But tracking spending can significantly impact your financial health while in school and after. Getting into good habits now will set you up for better financial success in the long run.
2. Minimize textbook spending
Textbooks are expensive, costing college students up to $1,200 a year. To help minimize your costs, look for used books through online sellers, opt for the ebook version, or look into renting them. If you do buy your textbooks, selling them to students on campus when you’re done can help you recoup some of your lost dollars.
3. Limit how much you’re eating out
Eating out adds up, with students spending an average of $400 monthly or more eating off-campus (not including groceries). But cooking your own meals and eating in can save you significant money (and be healthier). Implementing small habits like brewing your coffee in the morning instead of buying it can positively impact your wallet.
4. Use campus resources
From on-campus fitness centers and health care centers, your campus may offer resources for free or at a reduced cost that can help you save money. Your student status may also get you discounts on educational tools and subscriptions. Many places, like museums and public transportation, may offer students reduced prices, so carry your student ID with you.
5. Talk to a certified credit counselor
Even with all these tips, it might be hard to resist the temptation of a credit card. But if you do get one, try only to use it for emergencies and strive to pay it off every 30 days. Fortunately, if you do get into credit debt, a credit counselor can help you create a budget that works for you and help guide you when it’s time to repay your student loans. Getting help early can set you on a more financially healthy path.
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