Credit card usage among undergraduate college students has been growing by leaps and bounds in recent years to reach record levels. Since 2001 the percentage of college students owning at least one credit card witnessed a 24% rise from 1998 and it continues to grow with each passing year.

Freshmen who are the least likely among undergraduates to possess credit cards nevertheless registered 54% in card usage. When students in sophomore years are taken into consideration, the percentage carrying a minimum of one card goes as high as 92%.

In comparison a mere 23% of freshmen were found to avail a student loan. Therefore for a majority of students starting out in college, their first experience in credit is likely to be a credit card whereas back in 1991, it used to be student loans.

Among undergraduates in possession of credit cards, with half having balances lower than the median debt level and half with higher, the level has also gone up considerably. This is a clear indication that students have increased the frequency of card usage while avoiding paying off balances every month.

However on a more positive note, it was also discovered that students with cards have lower balances than earlier, with the percentage of students having balances higher than $7,000 also having declined.

The percentage of undergraduate students with not less than one credit card has gone up to 83%. Credit card balances were found to average $2,327 while the median credit card balance was estimated to be $1,770. Of the undergraduate college students in possession of credit cards, 21% had balances on the higher side between $3,000 and $7,000, which is a 61% increase from the previous year.

Other findings included an average of $20,402 in combined student loan and credit card balances for graduating students. Residents in the Northeast showed a tendency to use credit cards the least while students from the Midwest had a much higher likelihood of carrying the most in average credit card balances. Average credit card debt for students doubled from the time they begin college to the time of graduation, while the number of credit cards in their possession tripled.

In the light of these disturbing findings, it becomes increasingly clear that it has become imperative for college students to manage their finances and therefore debt, more efficiently. Caution and control are of paramount importance when it comes to credit card usage by college students.

In control lies the key to managing credit by way of control over credit expenditure, timely repayment and the actual products and services that are being purchased. college students need to realize that credit is not some sort of a financial cure-all. In fact using credit in the proper way can actually be beneficial by enabling you to afford certain major purchases and building a credit rating that will be a great advantage.

Though one may be aware of it, it can be the easiest thing in the word to allow a payment date to slip. However doing so can cost heavily as there are additional fees and finance charges that will be levied, not to mention the adverse effect it will have on your credit rating. At least the minimum amount specified in your credit card statement should be paid before the last date expires. The more that is paid over the minimum payment to be paid every month, the less will be the finance charges that will be applied.

When there are multiple payments to be made at the start of every month, its fart too easy to lose track of the amount you owe. In order to avoid this situation, you need to determine the amount of debt you can handle. Always make sure that the amount you borrow never exceeds 20 percent of your annual income, minus taxes. For monthly payments, there needs to be a limit of 10 percent of monthly net income which you should remain within.

You should also keep track of all credit expenses every month to help work out a monthly credit budget. This will prevent you from getting nasty surprises eachg time you receive your monthly bill.

Using credit should be restricted to planned purchases with the inmtention of paying off the amount owed within a specific time period. Never give in to impulse buys for tempting prices as they remain on your bill for months resulting in a much larger bill than necessary.

Think twice before using the cash advance facility. There are finance charges that come with every cash advance and they are usually much higher than the interest charged on regular purchases. Another situation to avoid at all costs is nearing or reaching the credit limit. It makes much more sense to avoid finance charges and have credit at hand in the event of emergencies like car repairs and unexpected medical conditions.

There are certain signs that indicate you may be headed for trouble where your credit is concerned. If they sound familiar to you, it is very likely that you may be in need of assistance to reevaluate your debt load.

You may be just about managing to make the minimum payment every month. Late payments may also be occurring far too often.

You are usually surprised on receiving your bill every month to discover the amount you have spent on new purchases.

You may often find yourself compelled to borrow money from othersw in order to pay off a pending debt or loan. This could also include applyuing for a new credit card for the sole purpose of paying off an old one.

You may have reached the credit limit on your credit card or even exceeded it.

Increasing difficulties in keeping pace with debt payments may be forcing you to consider working overtime or take up a second job.

Your savings may be getting used up in covering daily expenses. Take note of late payments, calls and letters from credit agencies as well as denial or revoking of credit. These are all indications that your credit history may be in the red and in need of urgent correction.