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Let me give you my card
You've probably heard it before, but it's important, so I'll say it again. Credit cards are NOT free money. No, they're like the thug who offers to lend you some cash, but will beat the crap out of you if you don't pay it back on time. And this thug really enjoys his work. Do not keep a balance owing on your credit card. Credit card interest rates are scandalous and only questionably preferable to a broken leg.
Despite the pitfalls of credit cards, used responsibly they are invaluable tools. They are necessary to take advantage of many of the deals found on this site. If you don't have one, you'll have to get a friend of family member to help you out, though there are sometimes workarounds you can use yourself.
Where credit's due...
To avoid wasting money on interest charges, always plan to pay the full balance when you get your credit card bill and never spend money you don't have in the bank. Okay? If you pay your bills on time, a credit card can essentially function as an interest-free loan, which is not a bad thing. But pay those bills on time! If you pay a credit card bill a couple of days late, you're not just paying for a couple of days worth of interest. You're paying interest on the full month's average daily balance. That's more, and that's bad. If you really can't pay off your credit card bill, consider consolidating your debt into a student line of credit at the bank. They'll charge you reasonable interest rates that can save you hundreds of dollars. But better yet, don't accumulate that debt in the first place.
A lot of people say use cash to avoid spending money you don't have. An extra zero here or there--who can keep track of what they're spending? If you have a credit card, it's up to you to do that. All the major banks allow you to check your balances online or by phone, so there's no excuse not to keep tabs on your spending. Make sure your bill doesn't come as a surprise.
What can you do for me?
That said, if you're getting a credit card, try to get one that works for you. The best cards pay you to use them, with rewards. We're actually very fond of credit cards, used to spend money we already have and would have spent anyway,--on books and groceries, for instance. If we're going to buy something, why not use a card and get a bonus out of it? But remember, the fact that you're not touching the cash doesn't mean you're not spending it.
What if this is all new to me?
Well, then we've caught you at the right time! Now is the time to build good spending habits. Using a credit card wisely can actually help you to build a good credit history, which will be useful later if you want to invest in a home or buy anything on a payment plan.
Is it too late for me?
Oh dear, maybe we didn't get to you in time and you're already mired in debt. You wouldn't be alone. Canadians are accumulating more debt now than ever before. And you're a student! If you're in this situation, don't rely on us, talk to a professional. An advisor at your bank would be a good choice. This is too important and we don't want to take any chances. Neither should you. It's not too late.
I'm indebted
School is expensive, and maybe you have student loans piling up in the background. That's not what we've been talking about when we were talking about high-interest credit card debt, which should be avoided at all costs. If you need help to pay for school, government loans are a life-saver, Not only will you not have to start paying them back until after you graduate, the government covers the interest until then. When you do start paying them back, you'll have a reasonable interest rate negotiated for you with the bank. And if, through some savvy financial planning, you manage to save up a chunk of that money while you're in school, you can pay at least part of it back after you graduate and avoid some of that interest altogether. Get more information about financial aid from the Quebec Ministry of Education or visit Concordia's (or your school's) Financial Aid and Awards office . And don't forget to apply for scholarships and bursaries, both from your school and other sources!
Books: there's more than one place to buy them...
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