College Students and Using Credit Cards Essay Example

they secure their first jobs (Kristina 4). This has become challenging making other to fear to join colleges du rot the expensive lifestyle and the pressure from loan boards.

Students with credit card debts might if find it difficult to pay for it after graduation since paying for the debt becomes very demanding after one leaves the college students. The situation becomes even a nightmare for most graduates especially those with student loans too. More so, with the high rate of underemployment and unemployment, people find it had to repay their loans and credit card debts (Grant and Lindsay 45). Students paying for their credit debts and loans taken during college accumulate plus interest, and some become more than a person future salary. This affects their future financial position as the college credit, and debt is cutfrom their salary. Most graduates admit that the repayment of the credit debt is a nightmare with all the current life expenses and demands.

Students’ credit cards discourage some students from workingso that they can earn extracash and cater for their daily expenses. These expenses include food, transportation, travel, and entertainment;their students' loan does not cover these costs, hence some work to cater for them while other use their credit cards to cater for them. Using credit cards id easier and does not consume time compared to them working. Therefore such students become lazy and fail to get the work experience that will help them after graduation or that will prepare them to understand various work environments.

Credit debt is viewed as a negative force in driving the future generation to bankruptcy. Students who take a credit cards loan and bank loans

experience a high repayment interest. As since most fresh graduates receive relativelysmall income the loans and debt significantly affect their future earnings. The current economy is one of the common arguments against the use of credit cards and college loans. Life has become expensive with the biggest challenge being in the rising living stand with a decreased salary and lack of employment (Kuzma, John & Harold 77).

The lure of spending can be irresistible, and this leads to more debt among the students. This does not end in college as there is life after school that people are required to continue with their survival. However, most graduates who have loans and credit debt find it to secure start-up loans after they have completed their college education (Kristina 4). The concession of the past loans and debts accumulate into a disaster for fresh graduates making a social and economic crisis. The economic grip on the young people is too much and with debt from college continues to make life unbearable for most young generations.

It is argued that credit card helps to build a credit history that will later be used by students in getting their apartment or house and even while leasing a car, depending on the credit score. However, to get a good credit score, a student must make payments on time; this may be challenging for those with low income and unemployed. The aim of having a strong credit history can be difficult if one is still struggling with bills since that will lower the credit score and if one's parents haveco-signed for the card, then the parent's credit score is also affected.

When one has

a credit card, they find themselves always spending, since credit cards are easily available and easy to use. Credit cards give one an opportunity to spend more than they can afford (Lim, Weng Marc, et al., 293.). They might end up overspending and forget the future hence blowing out their budget. Those with credits cards just like students with credit cards are spending without any restriction,some overspending with the hope that they will get a higher income in the future and other simply do not care since their parents are in charge and will only notice their spending until end month.

One lesson one get from college life is independence. However, those have credit cards that are co-signed by tier parents will not turn out fully independent particularly when it comes to financial independence (Lim, et al 391). Students should be left to manage their finances by working since will prepare them for life after college and also learn to survive when ways from their parents. When parents give their kid’s credit cards without proper guidance, may teach them poor money lessons and promote overspending.

Credit debt payment may come with higher interests that may not havebeen explained to the students. Credit companies have been accused of taking advantage of financial ignorance that students have and fail to explain to them all the term and condition of the credit card. When students fail to understand such terms, they fail to budget well, and this may lead to, high interest rates, late penalties, and annual fees. Some students also just sign up for credit cards since it comes with some social status and fails to understand what it

all entails. Students who are not aware of these terms or who sign up with wrong credit card companies might end up making bad financial decisions that may affect them in the near future.

In conclusion, the idea of students using credit cards should be discouraged to help them avoid overspending and carry forward their debts. The culture of credit cards and students loans introduces students to the world of credit and debt due to the financial freedom than college gives. Students are often given student loan and credit cards options in dealing with their finances instead of teaching and guiding them on alternative ways to cater to their needs while still, I school. As they say, one should always save first before spending, if the trend of credit cards continue among students, then simple and basic financial lessons will not be practice.

Works Cited

• ANDERSON, CARLA, and KAREN CARD. "Effective Practices Of Financial Education For College Students: Students' Perceptions Of Credit Card Use And Financial Responsibility." College Student Journal 49.2 (2015): 271-279. Academic Search Complete.Web. 5 Nov. 2016.
• Grant, Jennifer, and Lindsay Anglin."Student Loan Debt the Next Bubble?"American Bankruptcy Institute Journal 32.11 (2013): 44,45,88-89.
• Kristina, Dell. I Owe U, Making College Apiration Affordable; Acess Time (2011). Retrieved from http://www.gradnation.org/sites/default/files/I%20Owe%20U%20-%20TIME%20Magazine%20-%2010-31-11.pdf
• Kuzma, Ann T., John R. Kuzma, and Harold F. Thiewes."An Examination of Business Students' Student Loan Debt and Total Debt."American Journal of Business Education 3.4 (2010): 71-7.
• Lim, Weng Marc, et al. "Understanding Young Consumer Perceptions On Credit Card Usage: Implications For Responsible Consumption." Contemporary Management Research 10.4 (2014): 287-301. Academic Search Complete.Web. 5 Nov. 2016.