Students constantly search for methods to finance their college educations. What is sometimes overlooked within this formula? The rising cost of living expenses each student incurs during their school year. Many students desperate to make ends meet surrender to the credit card “spiral.” The following information will hopefully give students some ideas and advice on how best to manage their credit and debt while pushing through school.
The following are steps to help students manage their student credit cards. This information is presented by Liz Roberts, loan consultant, with New Horizons Finance:
1. Willpower: Simple concept but difficult for most people to grasp. When the mood strikes to pull out the credit card students should ask themselves one simple question: “Do I really need this item or do I just want it?” This simple but powerful idea will help students control their spending, create a conscious check before purchase, and in many cases train the “spender” by positively reinforcing the idea that their credit balance is in line with their income.
2. Pay Cash: When casinos first began in this country, casino owners understood the “value” of removing a gambler’s emotion from their money. Simply put, casino’s from that beginning until today always insist that you “change” your cash dollars into their chips. Gamblers have a much easier time losing, without regret, their money in a casino if they are betting with chips. If the gambler was forced to throw down cash for every game or bet, the regret factor would help deter their spending and lower casiono profits. Like Robert De Niro in the movie “Casino” (picture above), credit card companies rely upon your human side to lead your astray.
The exact same casino concept applies with credit cards. Paying cash gives the spender the “feeling” that hard earned monies need to be rationed. Using a credit card allows the spender to avoid this feeling. We all know the results of unconscious spending.
3 . Budget Money/Allowance: Students like housewives, should create a personal budget. List items that are monthly needs first. Attempt to cut out the “fat” that your can actually live without. If at all possible save some money each month for an emergency cash fund. This is difficult but it could come in handy in the future.
4. Be Responsible: Try to be the “owner” of your debt. Do not go to family or friends for bail out funds whenever possible. By staying within a budget, you will be more likely to stay out of financial trouble. Remember that favors from family is much easier to ask for if it is a rare occurrence rather than a monthly request.
If you have trouble remaining responsible, run your credit card debt into the “ditch”, and borrow every last dime available from family and friends then you might just find yourself in the predicament below. Be responsible stay out of the “ditch.”