Managing cards a lesson many learn too late.
A 2001 Millenium Scholarship Fund study found nineteen percent of post-secondary students had accumulated at least 2500 dollars of credit card debt.
Alan frank with Credit Counselling of Alberta says there's nothing wrong with students having credit, as long as they manage it well.
"What they want to do is have a realistic budget when they're going to school, or a spending plan put into place, and pay those credit cards off in full at the end of each month," he says. "If they do that, they don't get charged any interest at all and they get out of school without having that particular debt."
Frank warns a poor credit rating can come back to haunt students when they apply for a mortgage, car loan, or even a job.
He also says it's better to choose basic cards with lower rates, than those that offers bells and whistles with rates around 28 percent. He recommends keeping just one card so lending institutions don't see you as a "credit seeker."
For more information on managing student debt, check out www.alis.gov.ab.ca.