Mississippi college students should be wary about credit card debt

As Mississippi parents and students prepare for the new college school year, they should consider some important tips and lessons about credit cards. A recent finance article about personal credit reveals that financial challenges and credit card debt often begin during college.

According to the article, credit card debt often begins in college because credit card companies prey on financially inexperienced college students. For example, credit card companies would actively peddle high interest rate credit cards to no-income students despite their obvious inability to pay them off.

Fortunately, in recent years Congress has acted to cut down on credit card company mischief. For instance, it passed laws that will limit credit card companies' interactions with students as well as prohibiting them from entering into credit card agreements with certain students.

Even in light of such restrictions, however, students still get credit cards. As a result, students should learn how to avoid credit card debt by evading credit cards altogether, budgeting or applying for secured credit cards that help limit spending but still builds credit.

Unfortunately, many students and even older adults find themselves steeped in credit card debt and this is when the law becomes important. It provides remedies when expenses become unmanageable and people cannot make their minimum payments. In particular, filing for bankruptcy may be a real solution. Bankruptcy stops credit card companies from applying additional penalties for late or inadequate payments and allows individuals to start afresh.

The new college year brings many new and exciting changes. Unfortunately, it may also come with the reality of credit card debt. Mississippi parents and students should be aware of this reality and equip themselves to strategically approach credit card use and familiarize themselves with the option of filing bankruptcy if they find themselves in a situation that includes unmanageable debt.

Source: Sun Herald, "Credit lessons crucial for the college-bound," Gail MarksJarvis, Aug. 26, 2012

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