College Credit Card Debt in Chicago Can Get Out of Control Without the Right Plan
With many colleges and universities back in session after the summer months, students have a lot to deal with -- which classes to take, with whom to make friends and where to live.
But, as the New York Daily News reports, they must also consider which credit card to get. Many college students get overwhelmed by debt, especially if they're unable to find work. While a credit card can come in handy in tight spots, many students get through years of higher education not only with big student loan bills, but also mounds of credit card debt.
And this credit card debt can lead to a Chicago bankruptcy filing if students aren't careful to avoid the pitfalls of credit cards, such as their short-term low interest rates that balloon over time as well as hidden fees that can make a purchase much more expensive that the sticker price.
Bankruptcy in Chicago can help students who get out of school drowning in debt. After spending four years barely getting by financially, finally earning a degree is quite an accomplishment. But then having creditors hounding for payments and making life miserable all while trying to build a career can negatively impact quality of life. Consulting with an experienced Chicago Bankruptcy Lawyer and considering how bankruptcy will allow you to eliminate most of your debt may be a smart decision in order to free up time to focus on a new career and new life.
The New York Daily News article looks at at several credit cards that are geared toward students and how they may be beneficial to those seeking their first line of credit. Despite the recommendations, it's always buyer beware with credit cards. They are a company looking to make money and they do it by charging their cardholders excessive fees and interest levels in order to maximize profits.
The article's suggested cards:
CapitalOne Journey Credit Card: The article states the card has no annual fee and is designed to help students learn how to build credit. Cardholders get text and email alerts to keep payments on track and the card offers a bonus for paying on time. But for those who carry a monthly balance, be prepared to pay a 19.8 percent APR.
Citi mtvU Platinum Select Credit Card: The card has no annual fee and allows students to earn points for every dollar spent. The points can be redeemed at restaurants, movie theaters, bookstores and music stores. Maintaining a good GPA also allows for bonus points. The initial APR is 0 percent, but it climbs to as high as 22 percent.
Discover Student More Card: This card also has a rewards system and no annual fee. The rewards program allows for 0.25 percent cash back, but based on quarterly rotations, the "bonus" categories can earn 5 percent cash back. Interest rates can climb to 21 percent after a nine-month 0 percent APR period.
If you need to speak to a Chicago bankruptcy attorney call the DebtStoppers Bankruptcy Law Firm at 800-440-7235 today for a free debt analysis. Call 800-440-7235.
More Blog Entries:
Tackle Your Chicago Debt Ceiling Without an Act of Congress: August 16, 2011
Chicago Bankruptcy Can Help Students With Debt Caused By High College Loans: August 8, 2011
Additional Resources:
College kids need to pick the right credit card in addition to classes, dorms and friends, by Phyllis Furman, New York Daily News