College Credit Could Equal Debt

By: Natalie Pallone Email
By: Natalie Pallone Email

You're child is headed off to college, and you feel you've prepared them all you can. But before they leave you might want to talk to them about managing their finances.

Some financial experts say an incoming freshman with no debt will owe about $1500 to credit card companies by May.

As students head off to school they'll soon find themselves surrounded by credit card offers. US Bank and Wells Fargo are just two of many banks that offer credit cards especially for college students. The cards typically have a low limit and descent interest rates.

Lowcards.com is a website that lists what they say are the top student cards and tells you what the interest rates are.

Financial experts say parents need to set some rules to avoid financial disaster. Experts suggest:

-keep the credit limit to $300 to $700
-set rules on what the card can be used for
-have your child pay the balance off every month
-explain fees, interest and grace periods
-teach expense tracking and budgeting.


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