Average Student Credit Card Debt

I am looking to apply for a 2nd card, to improve my credit by opening another account, and constantly get pre-approved offers in the mail. These do however ask for personal info, including current yearly salary. Since I will not be out of grad school for 6 months and have no job currently, am I allowed to include loan money I have in salary? I know loan $$ is not technically salary, but it is what I currently live on until May and I have shown through my 1st card that I can live within my means on the loan money currently, by paying off 100% of what I owe each month on my current card.

Technically, loan money is not salary. I suggest you hold off on the second card until you actually have a job. Better still, don't even get a second card. The debt load can sneak up very quickly when you have multiple access to credit. If you keep a good credit record on that card, the bank will keep raising your limit and so there will be no need for the second card.

Like I said, wait and then see if there is a real reason to get a second card.

2006-12-16 14:41:51 by centremacdaddy

Many of us face credit card debts. Visit creditmattersblog.org to get tips on ways to solve and even avoid credit card debts. People sometimes get ...

Hi All. I'm a recent college grad who is fairly new to the workforce and is ready to get rid of her credit card debt!! I was fortunate enought not to borrow much in student loans (a total of about $9,000), however by grad time I owed about 9 thousand in credit card debt. Now I am ready to get rid of this burden. I know that this sounds horrible, but my situation was very different than that of the average student. I am a mother and was raising my daughter the whole time during college. Instead of working full time I focused on my studies and only worked part time. Needless to say this made everything harder but in the end it was worth it. Also, I'm not looking for an overnight solution. It took me six years to accumulate this debt so I know it wont disappera overnight. I'm just looking for the best way to go about it. Please help!

The amount of people throughout the United States who find themselves in debt continues to rise. For you, raising a child while being a college student made your financial a difficult one. For most, however, debt is the result of extraneous spending, poor money management, or both.

Below is a list of ten tips to getting out of debt. Some are easier to follow than others, but all are designed to help alleviate the problem - so take comfort in the fact that you can solve your debt, though it will be a tough process...

Ten peices of advice from allbusiness.com:
1. Create a realistic monthly budget for your expenses. List all monthly bills and necessities and make sure they are covered by your monthly income. Allow only the money remaining after the bills are paid to be spent elsewhere. Stay within your budget guidelines.
2. Pay off the balance on the credit card with the highest interest rate first (unless the balance on any card exceed 50 percent of your credit limit). First, pay all balances to below 50 percent of the card limit because balances above this level cause your credit score to diminish. Then pay off the balance on the credit card with the highest interest rate. If the account was opened within the past year and you have additional older accounts, close it after it is paid off. Next month do the same with the card that has the next highest interest rates. Continue until you reach the credit card with the most favorable terms (i.e., low interest rates). Use this as your preferred account. You need only four open accounts to establish a positive credit history.
3. Learn to use cash instead of credit cards. Have one primary credit card and use it only for emergencies or major necessities, such as a new refrigerator if the current one stops working. Put your credit card in a safe place, not available for everyday use. Also, do not accept increases on your credit card limit above an amount you can easily pay off in three months.
4. Use direct deposit for your paychecks. Also have a limit on how much you will allow yourself to withdraw each week and month.
5. Cut down on your discretionary expenses. This includes dining out, overusing your cell phone, and other such unnecessary expenses.
6. Evaluate your living situation. Your housing costs should be no more than 33 percent of your household income, including mortgage payments, property tax, and both property and homeowner's insurance. You can shop around for lower insurance rates, refinance your home mortgage, and look for more economical utility plans.
7. Avoid borrowing money to get out of debt, especially consolidation loans. Many people think this is a way of helping them get out of debt. However, consolidation loans are simply a means of combining debt. You could end up losing everything because you’ve tied it all up in one loan. If you must borrow, see if a friend or family member can lend you money, since the interest rates should be low or nonexistent.
8. Contact your creditors and try to work out repayment plans. Many creditors are willing to work with you in a manner that will help them get their money without having to resort to debt collectors.
9. Become a savvy shopper. Look for deals, bargains, and savings. You’d be surprised at how much you can save if you take the time to shop around. Check out the price comparison Web sites such as Shopping.com and BizRate.com.
10. Look for extra ways to make some money. From part-time work to a garage sale to taking in a boarder, there are many ways to bring in some additional income.

If all else fails, seek out help from a debt reduction specialist or counselors [see link below] who can help you formulate a plan for getting out of debt and staying out. Just make sure that you check out the service in advance. Many companies are simply taking advantage of people in debt and charging them high service charges.

For MSN Money's take on credit card debt, follow this link-
http://moneycentral.msn.com/content/Bank ing/creditcardsmarts/P74808.asp

For more advice, these are also helpful allbusiness.com links-
Should I Borrow Money to Get out of Debt: http://www.allbusiness.com/3915481-1.htm l
To Get Matched with a Relief Specialist:
http://www.allbusiness.com/3776688-1.htm l

Good luck in climbing out of debt. Try to modify your personal finance outlook in doing so, and you should be well on your way.

2007-06-05 10:19:01 by true blue

Price: $22.95

Not including mortages, student loans..etc.

Approximately $9,200.

http://money.cnn.com/magazines/moneymag/ money101/lesson9/

2008-03-24 10:44:03 by sarahrose

i have 2 student credit card w/ APR 16.5% and $1000 limit each. i spent $500 on card1 and $900 on card2. card1 is from my credit union and a finance charge is placed every month which is roughly around $7 (i don't have a problem with that). HOWEVER card 2 is charging lots of hidden fees and it's adding up like hell! last month i paid $100 and my available credit for that card went up $100 . since then (1 month) it has gone down to $77. For some reason its available credit has always been decreasing and i don't know why. Even when i first got it and only spent $100 the credit gradually decreases from 900 to 889 etc.. This must mean that the card is ripping me off w/ their method of calculating the finance fees.

i don't want to apply for another card. however i'm thinking about transfering my balance from card 2 to card1 once i get a credit increase on card1. card1 has a better method of calculating its finance fees ("average daily balance" x .165 x 31/365).
my credit union doesn't charge a transfer fee and there's no annual fee. the only problem is the APR is at 16.5%...however i did some math and at 16.5% the finance charge of the balance on card1 and 2 combine would still be less than card2 right now!

i've always made my payments on time and well above the minimum. i have enough money in my account to pay 95% of the debt but i kindda need the money for college and rent and food and all that price that comes with college. i haven't used my card since sept and don't plan on doing so anymore in the future...

So what is my best option....any help would be greatly appreciated! ^_^
i'm not a bad spender at the debt on my credit cards are not out of my own selfish spending..i don't eat out or overspend on unecesary things. i help my parents with their bills and their rent, i'm also paying for my own tuition and i have 2 jobs and i'm a full time college student......so i don't have a spending problem, don't lecture me on that

The credit card company is not ripping you off. If you are not paying your balance in full "every month", you will get finance charges. The only way to avoid interest is to pay the full balance within the grace period (your due date).

I work for a major credit card company, in collections. I do not approve of how we taunt college students with credit cards, knowing they are probably full time students, with part time income, no income, or Mom and Dad's monthly allowance.
Protect and perserve your credit sweetie, like you would your social security number. Debt will come back to haunt you. Always remember that you won't always be a student. You will graduate and want to buy your own home, a car. Today potential emplyers are now checking your credit as well. So it may even hinder you from getting the job your college diplomia allowed you to even qualify for.

Enough of that, the help:

1.Call your credit union, ask if they have any promtional interest rates for balance transfers. (Most promtional rates are 0%-5%, depending on your credit score)

2. Now that a balance transfer is an option, let them know your interest and that you desire to have all your business with them . They will love to hear that. (depending on how your credit looks).

3. This will set you up automatically for a credit line increase request from your credit union. It may only be enough to pay off the other card and possible trsnfer fees if any, (ie.no more spending).

4. Take full advatnge of that low intrest rate. Pay as much as you can whenever you can, because most of your payment will be going to your balnce and not fees and finance charges.

*****DON'T EVER PAY LATE*****
THIS WILL RUIN EVERYTHING & CANCEL YOUR APR

5. Earn the right to say, "Mom, Dad I'm an adult stop treating me like a kid. You won't be able to say that if you mess up your credit and they have to co-sign for your car or home. Make your parents proud. Have "A1" credit along with that college degree. If you need any help leave your email info.

2008-02-08 19:15:51 by SMILES

I am a 21 year old College Student with about $30,000.00 worth of Credit Card Debt. I have 7 credit cards with an average APR of 19.6%. I don't have a job right now, but I am in the process of getting one...that being said at best I am going to be making between $10-$12. I have no collateral so taking out a loan is basically out of the question. My parent's won't take out a loan for me and my girlfriend makes $15,000.00 and has a loan out for $8,000.00 right now. I am not sure what to do, does anyone have any ideas?

Check out Dave Ramsey.

He has books and a radio program. He helps people get debt free. And it does not cost you anything (unless you decide to buy his books rather than check them out at the library).

Dave has a strategy he calls "The Debt Snowball". The best way to tackle a large amount of debt is to have a plan.

2008-11-19 15:32:56 by cpwilson123