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9.2 Credit Cards: A Tool, Not a Crutch

As a student, chances are you will need to rely on credit from time to time. Credit allows
you to receive goods and services now in exchange for payment at a later date. You should
approach consumer credit with caution, particularly when it comes to credit cards. Almost
anyone over age 18 can sign up for a credit card, regardless of ability to make payments. It is
up to the borrower (that’s you) to exercise good judgment to avoid borrowing more than you
can afford to pay back. This, of course, is easier said than done.

Life is full of temptations and unexpected events, both of which can be costly. It is easy to
swipe your card to pay for things. However, unless you have factored these costs into your
budget, you may be paying on these items for years and at a far higher cost than the original
price, thanks to very high interest rates. It is vitally important to pay off your credit card
balance, in its entirety, each month. If you do not have the discipline or ability to do so, you
should reconsider how you use your credit cards; a good rule of thumb is not to use your
credit card to dine out or purchase clothing.

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