As someone who has been in the financial industry for the past 20 years, I can tell you first-hand that student credit cards are a huge mistake. I understand that they have their advantages and they can be a great tool for students to start building their credit score. However, I think that these cards are going to teach these young punks a big lesson in the long run.
It’s not free money
The first lesson that these students are going to learn is that credit cards are not free money. Too often I’ve seen students get a credit card thinking that they can just spend it and not worry about the consequences. This is a dangerous mindset to have and it can lead to serious financial trouble down the line. Credit cards are important tools, but they should be used responsibly and carefully.
Another lesson that these students are going to learn is that interest rates can be incredibly high. Many student credit cards have high-interest rates and if the students are not careful they can quickly find themselves in over their heads with debt. This is why it’s so important for students to understand exactly what they are getting into before they get a credit card.
My friend was a victim
My friend got a student credit card and ended up in debt When my friend first got their student credit card, they were so excited. They thought it was the ultimate symbol of freedom and independence. Little did they know, they were setting themselves up for a world of financial pain.
The first thing my friend did was go out and buy a few things they wanted— some new clothes, a few gadgets, and a few nights out with friends. My friend thought about how great it felt to buy whatever they wanted without having to worry about money.
But then the bills started to roll in. My friend soon realized that the debt was piling up faster than they could pay it off. My friend had to resort to making minimum payments each month to make sure the credit card company didn’t start charging them late fees.
At first, my friend thought the debt wouldn’t be so bad. They figured they’d be able to pay it off eventually. But then, my friend started getting offers for more credit cards. Before they knew it, they were carrying multiple student credit cards with balances that kept growing.