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Credit Card Fees and Balances

Every household has one or more credit card balances. While many pay off these balances each month, the interest that is charged on these balances can still be charged up to five times per year. A student credit card balances in college costs more than, say, $2,500 a year in college. Add in the cost of housing and tuition, and college tuition expenses and you have a staggering pile of credits left that ought to be paid.

The problem is that the interest charged on college student credit card balances doesn’t seem to have become a problem during the past forty-five years. In fact, credit card bills have been escalating steadily for decades. It’s very difficult today to get a handle on your credit cards and what’s left to be solved are credit card fees.

One possible solution for curtailing the number of college student credit card fees is to cut them up, put them in a savings package, and then charge them to the cards with the lowest interest rates. This may be a profitable option as the total outstanding balance on your student credit card isn’t that much. But it defeats the purpose for it, since reducing the fees won’t solve anything for students who might be going under soon.

Another option would be to put them in a savings package with a college savings plan, which typically offers students a fixed rate between twelve and sixteen percent interest annually. Or you could eliminate them from your savings package by putting them on a high-interest, unsecured credit card with a low credit line. If your student credit card offers you lower credit lines, make sure that your college savings plan offers a way to provide lower interest rates for student credit cards.

Other advantages of reducing the college student credit card fees are not all that new. The problem was that the fees continue accumulating, so reducing them was clearly not a good idea.

So what is going to happen? After all, we don’t live in a day where getting credit is just a pipe dream. We do it. Since credit card companies are competing in unprecedented numbers for customers and revenue, the price tag for college student credit cards is always going up. Even the lowest-priced college student credit cards can be a large and complicated task, so student debt doesn’t seem to have become a problem anyway.

Another potential solution is lowering the monthly credit cards fee by $10 or more. This may not look like a dramatic reduction in the fee per month, but many card companies make allowances for their credit card employees, so a low-cost option would reduce expenses considerably. After all, where would the money go when most of the money goes toward salaries and benefits?

Admittedly, eliminating the college student credit card fees pose challenges. But what are the disadvantages? Start by balancing the needs of your employees with the cash you need to fund your college expenses. Let students use their credit cards to make major purchases; then use the cash to pay for homework and other bills; and finally use the credit card to pay for college related expenses that aren’t actually necessary.

Most college student credit card issuers don’t seem to be overly concerned about the negatives of reducing the college student credit card fees. At least they acknowledge the potential challenges.

Start by making some small payments on your student credit cards. You might be able to pay them off in a year or two if you manage to qualify for a house loan or car payment. And if you manage to pay the bills off each month you could have an extra $20 or so left over a year to pay off your credit card debts. If you continue to make your payments on time and handle your student credit card bill payments sensibly you could be good money-get-a-late! policy.

Apply Now! for Your First Debit Card

In a country that does not give any credit at all to people with good credit, credit card companies are giving college students credit cards for free. The logic of this is good, since the most you will spend on your student credit cards is usually the interest you will pay out over the course of your life for the credit card. This is also the logic of the credit card company and their lending agencies, which seems to justify the great increases in interest rates from the credit cards. For many people, the situation seems to be getting better these days, since getting either a free credit card or a debit card is becoming more and more important.

Well, it is, and it is being getting better without too much effort from you, the person with the credit card. There are many websites, books, magazines and radio spots that warn consumers about the dangers of using credit cards while in college.