Avoiding College Credit Card TrapsWritten by James Dimmitt
Congratulations college freshman! Youíre about to embark on one of most exciting times of your life. By now your parents, siblings, and friends have offered you all kinds of advice on how to make your transition to college smoother - how to get along with your roommate, what classes to take and which ones to avoid, where to find best off-campus food, and how to stay safe on campus.
One thing they may have not warned you about is how quickly youíll be bombarded with credit card offers. Youíll find them in your textbooks, in your mailbox, and on every campus bulletin board. Youíll be offered free DVDís, t-shirts, music downloads, and more in return for completing an application for credit.
Why all this fuss over you for a stupid piece of plastic? Because they love to recruit new borrowers, especially in your age bracket. They know, from numerous studies, that college students tend to be impulse buyers. And even though your impulse purchases tend to be small - pizza, coffee, beer, CDís, cigarettes, books, etc. - those small purchases can add up quickly.
Fifty-four percent of freshman students and 92 percent of sophomores have at least one credit card. A recent study shows average college student graduates with between $1,500 - $3,000 in credit card debt.
Here are 7 tips to help you manage your college credit card needs:
1) Look for a card with lowest fixed percentage rate and a low or no annual fee. Read fine print carefully - many low or 0% introductory rate offers expire in 6-12 months.
Debt Reduction SolutionsWritten by Mark Lambie
Finding solutions to reducing your debt takes some thinking and research on your part. You have some good choices available to you and we shall list these key debt reduction solutions for you right here:
1. Home Equity Loan or Home Equity Line of Credit. Your 21% charge card can be reduced to nearly 6% over night. How? By taking out a line of credit or equity loan against your home. Equity loans and lines of credit are available at low rates and banks are very willing to extend this service to you as your home is your collateral. Pay off all of your credit card debt with loan and you will achieve debt reduction solutions immediately.
2. Replace high interest credit cards with low interest cards. Yes, in this day of low interest rates, many credit cards carry high interest rates. Ask your credit card issuer to reduce their rate closer to market rates. If they refuse to budge, consider applying for a low interest rate card from another provider. Transfer your balance to provider offering best rate.
3. Debt reduction solutions can be realized through selling of other assets including: an extra car, antiques, jewelry, extra property, renting out property, or liquidating some other assets. Check around your home and see if there is something that you owe that can be sold on eBay or locally at a yard sale. Take proceeds from your sale and pay down your debt, starting with biggest debt first.