Urgent! I Need Credit Counseling Now

College students are running up an alarmingly large amount of credit card debt these days and it is only increasing with the passage of time. The average undergraduate student carries $2,500 in credit card debt and by the time they graduate from college, they are beginning their new lives in the "real world" with debt that they can't pay.

Students figure: I'll live like I want to now and then when I get a job it will be easy to pay it back. This is often not the case. Lower-than-expected salaries, plus higher-than-expected living expenses and hefty student loan payments, make handling credit card debt all the more difficult for students and recent grads.

And the worse part about college students having so much credit card debt is that it takes so long to pay it off. Even if they are able to make the minimum payments, by sticking to minimum payments it would take a student more than 12 years and $1,115 in interest to pay off a $1,000 bill on a card with an 18 percent annual rate. If students fall behind in their payments, they get slammed with high late fees. And it's easy for things to get out of hand.

Of course, there are two sides to this story. Most college students start out with little and even no credit, so having a credit card seems like a good idea so they can start building a credit history in anticipation of owning a new or better car and even, someday their own home. Except for if they haven't been warned of the dangers of using credit cards or are especially naïve, this could be a bad move.

Credit card debt for college students affects many, many aspects of their college lives. They can't pay their bills regularly and find themselves short of cash. Plus, it can affect their ability to secure a student loan which can be crucial with ever-rising tuition rates. And parents should beware of putting their college student on their own credit cars as an authorized user as the same debt can pile up under the parents' names and cause some serious credit problems.

Armed with the right information, many students are able to establish credit and steer clear of card debt. Even though college students do carry credit card debt, 54 percent of college students pay off their credit card balances every month. Most tend to be responsible and use the card wisely.

However, some of them don't and they're getting into trouble. If a person makes it through 18 years of life without any financial wherewithal, it's very difficult to change their behavior and that's why it's so important that parents speak to their children about money management. To keep a college student out of credit card debt, the key is teaching students money management skills before handing them a credit card.

When it comes to credit repair when you have found yourself in a bad credit situation, self-help might be the best route for you to go. It seems we are bombarded daily and often with companies who claim that they can help you repair your credit for a small fee and you won't have to worry about it at all. However, the truth is that self help credit repair is not only possible, but really the way to go.

It isn't as difficult as many people might think going about repairing your credit yourself. In fact the newest trend in credit repair actually the self help road. All you need to do is start by pulling a copy of your credit report from all three credit reporting bureaus: Experian, Equifax, and TransUnion. You are entitled to one free credit report per year thanks to passage of the FACT Act. The other two, you'll have to pay for, but the fee is usually small - between $10 and $15.

After you get your credit reports, the next self help step is to go through those reports and check to see that the information is accurate. Most of the time, there are going to be errors of some type. These errors can vary from a past due account that has been paid off to a debt that wasn't yours in the first place.

If you find errors, you need to contact the credit reporting agency both by phone and in writing. You'll be asked to provide proof of the error and then they, in turn are required to notify you in writing of their decision to either remove it from your credit report or leave it due to insufficient proof. Be diligent in this endeavor. An accomplished self help credit repair program entails being aggressive when it comes to your information and the accuracy of that information.

Another part of a self help credit repair program includes the development of a long-term plan that will help you keep your credit use under control and a plan for not getting into credit problems again. Sure, credit counselors can help you do this, but why pay the money and take the chance that you are dealing with a less than reputable company?

Do a little research and you'll find that there is plenty of information available on the Internet as well as software programs that can help you with your self help credit repair program. Repairing your credit yourself requires a commitment on your behalf, but in the long run, you'll be pleased with the results - and knowing that you did it yourself!