- Apply to UW
- Programs & Majors
- Cost & Financial Aid
- Current Students
- UW Life
- About UW
At first, it may have been easy to use your credit card sparingly. Maybe over the first few budget cycles, you charged just a few dollars and paid the balance quickly. You were in control.
Self-control, however, can be a fleeting thing. Slowly, your balance may creep up as you buy more than you can afford in a month, and you run the risk of accruing major credit card debt.
The going credit card interest rate for students is usually more than 14 percent, but it can run as high as 18 percent. With an 18 percent interest rate, that means a $3,000 credit card balance will set you back about $60 per month for almost eight years—assuming you don't make any new purchases. On top of that, you will end up spending about $5,600 to pay off that $3,000 balance—provided that you stop spending. That's practically paying back $2 for every $1 you spent in college, or double the original amount you spent.
Here are four action steps you can take to help extract yourself from credit card debt:
For more information and advice on how to get out of debt, visit the National Foundation for Credit Counseling website.
Information provided by CashCourse, www.cashcourse.org