Nearly 9 out of every 10 students who use college students credit cards report turning to plastic to cover basic living expenses, including food, housing and gas, according to recent findings. The reliance on credit to meet everyday needs points to growing financial pressure on campus households and raises the risk of carrying balances with high interest.
Why college students credit cards are covering basics
Using credit cards for essentials suggests that paychecks, family support or financial aid are not keeping pace with rising costs. When everyday purchases land on revolving credit, students can face mounting balances and fees if they are unable to pay in full each month.
Potential costs for student budgets
Experts caution that regular spending on necessities with credit can lead to long-term debt and damaged credit profiles if payments are missed or only minimums are paid. That can make it harder and more expensive to borrow in the future, from car loans to apartment rentals.
What students can consider
- Track monthly essentials like rent, groceries and transportation to set a realistic budget.
- Seek campus or community support programs that can offset food or housing costs.
- Aim to pay statements in full when possible, or prioritize the highest-interest balances.
For Hawaiʻi students balancing school, work and higher living costs, these pressures can be especially acute. Financial counselors recommend exploring scholarships, emergency aid and income options to reduce reliance on credit for necessities.
