Mn Sy Py CoLLEGeEe LIFE Tips On Managing Credit Card Debt (NAPSA)—A lesson that many college students learn too late is that nothing is free—especially credit card purchases. A recent survey revealed that four in 10 people have signed up for a credit card to receive a free gift or special offer. More than half of those respondents—52 percent—left college ith credit card debt. The survey as commissioned by TrueCredit.com and as conducted by Zogby International. According to a 2007 study by student-loan provider Nellie Mae, the average credit card debt for college students is about $2,748. Making minimum payments, it ould take nearly 18 years and an additional $2,506.01 in interest, at a rate of 15 percent, to pay off the debt. “Credit card debt impacts more than just your allet today. It can also affect your credit score ell beyond your college years,” explains Lucy Duni, vice president of consumer education at TransUnion’s TrueCredit.com. “The good nesis students ho understand their spending limits, adhere to a budget and make payments on time can build a solid foundation for future financial success.” Here are sometips: Students need to understand exactly here their finances stand. Regularly revieing financial statements, along ith their credit reports from all three credit-reporting companies, is a good ay to understand here they stand at any given time. Negative records such as late payments andcollection accounts can remain on credit reports for seven years. Students can keep their future finances healthy by Students can successfully manage their finances and avoid credit card debt by understanding here their finances stand and creating a monthly budget. avoiding these problems from the beginning. Creating a monthly spending plan can help students understand ho much they need to pay toard their debts and ho much they can afford to splurge. They should focus on paying off highinterest credit card debts as soon as possible. Prepare for emergencies by building up enough savings to cover expenses for to to three months. If they find themselves out of a job or unable to pay back their debts, graduates should immediately call their creditors and lenders to explain the situation. Many federal loan programs have deferment and forbearance programs. Consider loan consolidation options. Often, students ho consolidate ithin six monthsof graduation or hosign up for automatic payments can save even more. To learn more about managing credit, visit .TrueCredit.com.
