Nov
22
How College Students can pay off their Credit card debt
November 22, 2008 |
Do you know that 83% of the undergraduates own a credit card while 96% of the students in the senior year posses up to as many as six credit cards? Neilson survey’s recently revealed an interesting fact that an average American student entering college as a freshman already has around $2000 dollar as credit card debt. This debt amount increases to almost $3500 by the time the student enters the senior year. More than 40% of the seniors have a credit card debt amount above $3000 and one in ten owes the debt exceeding 7000 dollars. Another startling fact is that the number of credit cards possessed by the students increases as they progress towards the next year.
Massive marketing campaigns through internet, emails and offering of free gifts lure the college students in taking credit cards. But not being educated enough about the drawbacks and the increased expenses while using a credit card makes them misuse this plastic money which lands them in huge credit card debts. Combined with the students’ loan it becomes really a big burden for the students to get rid of this burden. And if they are not able to pay the minimum monthly credit card debt amount this grow up to monstrous proportion.
The best way for the students to pay credit card debt is:
- Opting for student consolidation loan. The involves consolidation of all your debts into one loan which is of lower interest rate and helps you in making timely monthly installments. This can not only help you in lowering monthly bills but in turn also help them in faster repayment of debts. Negotiate your terms before taking any students consolidation loan, with good installment payment history and nice credit report it will be easier for you to get a loan at a lower rate of interest.
- You can even seek the help of a professional debt consolidation counselor or credit counselor that will discuss all your options with your and help in laying out a plan which is best suited for you
- Select a suitable Credit card debt consolidation firm or a lender that can help you in acquiring additional mortgage which will help you to eliminate credit card debt. They will also negotiate with your lenders to both bring down their interest rates or their fees and offer you some discount which will provide you with great relief.
Above steps can help students to eliminate credit card debts but the first most important step which they should take to ease their loans is to stash away their credit cards as early as possible.
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