Opening Fewer Credit Cards Could Reduce Debt Among College Students
In the past several years, college students have been struggling under an increased amount of debt caused by large student loans and credit card payments.
While many students are capable of responsible financial action, those who hold more than one card are at a greater risk for missing monthly payment could cause more damage down the road.
According to a recent study by government mortgage giant Sallie Mae, 50 percent of college students now carry four or more credit cards, The Huffington Post reports. While this may be necessary for the number of expenses they incur, when coupled with homework and test deadlines, these important payments can often fall by the wayside.
While a $10 to $15 monthly minimum may not seem like much, students could be harming their credit history, the news source reports. By establishing a poor report with credit card companies, many young people could be accumulating future debt in the form of increased interest rates and loan payments.
Over time this may even add up to hundreds of dollars in lost savings. As a result, many parents may wish to talk to their children about fiscal responsibility before cosigning on a new plastic card.