Any college student today will tell you that it is hard just to get by financially each day. Tuition for both private and public institutions are on the rise. Books are more expensive. And, meanwhile, daily living expenses like food, gas and rent show no signs of relenting.

One of the tools that college students have traditionally used for making day-to-day purchases as well as for emergency purchases – has been the credit card. While a card can be a very convenient tool for college students, it can also enable them to go deep into debt.

If you are interested in promoting financial responsibility among yourself or a college student in your life, here are 5 steps to lowering student card debt. College students and debt do not have to go hand-in-hand:

1. Debt is on the rise among college students:

A recent Sallie Mae study proved that credit card debt among college students is at all-time-high. Students with cards are now graduating with thousands of dollars in card debt, on average. Part of the reason for this is that, until recently, it has been exceedingly easy for college students to acquire credit cards.

2. New laws make it harder for college students to qualify for credit cards:

Recent laws in the U.S. now make it harder for credit card companies to market directly to college students. For example, marketers for these companies are no longer able to physically come within a certain distance of campuses, and they are not allowed to sign up anybody under the age of 21 for a card.

3. One alternative is to go cash-only:

In light of these changes, some students now prefer to go the cash-only route. This means that they no longer use cards, opting instead to use cash or cash equivalents, such as debit cards and checks. The only weakness with this solution is that, without a credit card, the student has no backup fund in case an emergency purchase needs to be made.

4. Or, students can co-sign for a card with a parent:

An alternative to going cash-only is to co-sign with a parent or another adult for a credit card. The downside of this option is that the student still ends up with a credit card, like before the new law went into effect. The result is still mounting credit card debt, even with the adult co-signer.

5. Some students opt to use prepaid debit cards for day-to-day use:

A third option for the student is to go ahead and apply for a card, but to use it only for emergency situations. Then, for day-to-day use, the student can buy and use a prepaid debit card. These cards require no application process because they do not tie in with the student’s credit history in any way. Rather, you just purchase the debit card for a certain amount and then use it like a credit card – wherever Visa, MasterCard and American Express are accepted.

Credit card debt continues to be a serious problem for college students. By trying one of these alternative solutions, students (and their parents) can reduce the debt or avoid it altogether.

Author Bio: Find out more about prepaid debit cards at: Prepaid Debit Card Warehouse.

Category: Education
Keywords: credit card debt college student and, prepaid debit cards, manage college credit card debt