Money Management

Credit Card Management

Managing credit card spending and repayment can often be a difficult job for students. Remembering some facts about credit cards, though, can help you beware of mismanaging your credit.

Monitoring your spending

If you are already carrying a balance on your bill, seriously consider the amount you are able to pay back before making additional charges on your card. If you haven't been able to pay off your bill in the past, the probability that you will not be able to pay off an even larger bill in the future is indeed very large. In addition, your minimum monthly payment will usually increase with your outstanding balance.

Adding charges at this point, then, increases not only the amount you are unable to pay on your outstanding balance but also the amount of your minimum monthly payment.

These two factors are certain to expand the possibility that you will not be able to make your payments on time, which will severely affect your credit rating.

Securing your future

Your credit rating is important to your future. A bad credit rating could prevent you from buying a car or a home or even jeopardize your chances of getting a job or a promotion. These consequences suggest that making your credit card payments on time will be an essential component of securing your future.

Because the choices you make now can affect your future credit opportunities, you must be careful about repaying your debt. Always remember: Do not spend more than you can pay back, and try to pay your bill in full and on time.

In-depth resources

Here are some in-depth resources that you can use for managing your money and preventing problems with debt.

The National Foundation for Credit Counseling A national non-profit network of 1,450 Neighborhood Financial Care Centers designed to provide assistance to people dealing with stressful financial situations.

American Consumer Credit Counseling A nationally recognized consumer credit 501(3c) non-profit organization helping people regain financial control through debt consolidation and credit counseling.