Dodging Debt

Are credit cards a golden ticket to financial freedom or a slippery slope to debt city? According to the Federal Reserve Bank of New York, total household debt is now up to a whopping $18.04 trillion. Once you are in debt, it is very difficult to dig yourself out of that hole especially when you don’t consider future expenses. College is expensive, and it’s only getting worse. One big mistake students make is ignoring the long-term impact of their debt. The “I’ll deal with it after I graduate” mindset doesn’t work—graduation comes faster than you think.

Your college years may be the most affordable time in your life—unless you never move out of your parents’ basement. Instead of planning your future around your debt, plan your debt around your future. Once you graduate or a few years down the line, expenses are going to get worse. You are going to have housing payments, travel expenses, utility bills, groceries and everything in between. These necessities will only get more expensive when you decide to start a family—and I doubt you want your college debt from 10 years ago still hanging over your head. Take control of your financial life now to ensure stability later.

Brandes advises using credit cards only for essential purchases. Spend money you actually have—not what you think you'll have later. “You’re taking a loan out to eat Chipotle,” she jokes, pointing out the danger of spending on a credit card. Cash spending hurts more in the moment because the money physically disappears. With credit cards, it’s easy to lose track of spending until your statement arrives. And with tap-to-pay options on phones and smartwatches, spending is easier than ever. At our age, you should think of credit as a tool—not as free money.

Credit Check

If you don’t have a credit card yet, consider getting one. I’m not saying you should max it out, but owning a card helps you build credit. "Students need to understand that if they’re authorized users on a parent’s credit card, they lose that credit history once they’re removed," says Decker. Brandes disagrees—she believes students should wait until they have a full-time job before getting a card. She’s seen too many young adults overspend and rack up interest. Here’s my advice: use your debit card for most purchases, and set one small recurring charge on your credit card (like Apple Music). That shows consistent activity without the risk of overspending.

I recently learned that keeping your usage under 30% of your credit limit boosts your score. Also: don’t just pay the minimum. Always aim to pay your full statement balance. If you ever make a large purchase, like a car, consider financing it with a short-term loan to build credit. Yes, you’ll pay some interest—but spreading payments out over a year can help grow your credit score. After graduation, when you want to move out, leasing companies will run a credit check to see if you’re reliable. A strong score takes time and consistency. Make small purchases each month and always pay them off. Responsible credit use opens doors: lower interest rates, better jobs, and improved housing options. 

Decker advises: “Before getting a credit card, ask yourself: ‘Will this make me spend more than I should?’” If the answer is yes, wait. But if you're ready, find the card that best fits your lifestyle. Some offer cash back on groceries, gas, or streaming. Student credit cards often come with no annual fee and don’t require credit history. Decker recommends the DiscoverIt Student card; another solid option is Capital One’s student card, which offers similar benefits.

Final Advice

Being financially responsible in college isn’t about being perfect—it’s about being proactive. Whether you’re meal prepping, taking on a side hustle, or swiping smart with a student discount, every little bit adds up. Start where you are, use the resources available, and build habits that will benefit you in the future.