Jeffrey M. Rosenblum, P.C.
A Fresh Start

Ways for teenagers to avoid credit card debt

Nassau, New York, is home to a number of universities. As the school year is about to start, many freshmen have their own credit card for the first time and this scares a lot of parents, especially if the parents are co-signers since co-signers are ultimately responsible for the credit card bill if the teenager cannot pay. Parents should remember that having a credit card is a significant step for their children to build a credit history that can be used to apply for loans or purchase a car in the future.

To help readers learn about the effective ways to use a credit card, the following tips may help. First, there are numerous types of credit card plans that providers offer and first-time users are advised to choose the most suitable card for them. Next, the credit card is a loan and the young people should make sure not to spend more than they can pay back when the bill arrives.

Also, the young person should be careful not to only pay the minimum payment each month. Some plans have high interest rates that are compounded if months' worth of debts are not paid. Unpaid debts can lead to unsolicited, often disruptive calls from collection agencies. It is also very important that new credit card users pay their bills on time as their credit scores may suffer otherwise.

Sticking to the budget is one of the wisest things to do but not all college students can do that. If their debts accumulate, they may regret it. In case they face unexpected life changes and struggle with credit card debts, Nassau residents may wish to consider personal bankruptcy. With personal bankruptcy, this approach may help the person to avoid being the target of harassment from credit card companies and banks.

Source: The Patriot-News, "5 tips for college freshmen with their first credit cards: Back to School," Anna Orso, Aug. 11, 2013