credit cardKENTUCKY (12/5/17) — Students can get into trouble with credit card debt if they don’t take time to think about what they’re doing, according to the Kentucky Higher Education Assistance Authority.

One quick way to get into trouble is to carry a high balance and pay only the minimum payment each month.

If you have a $1,500 balance, your minimum payment might be $30 a month, since many credit card companies set the minimum payment at 2 percent of the balance. Let’s say your card carries a 22 percent interest rate. If you only pay $30 a month and don’t charge anything else until you pay off the entire balance, it will take you more than 11 years to pay your balance down to zero — and you’ll pay $2,600 in interest.

It’s worse, of course, if you pay the $30 and turn around and charge another $30.

That circle is especially bad for students. Many college officials say more students drop out because they have to go to work to pay off their credit cards than because they flunk out.

Before using your credit card, ask yourself if you really need what you’re buying and if you can afford it. And if you can’t pay off the entire balance, pay as much as you can, not just the minimum.

KHEAA is the state agency that administers Kentucky’s grant and scholarship programs, including the Kentucky Educational Excellence Scholarship. The agency also provides financial literacy videos at http://itsmoney.kheaa.com and free copies of “It’s Money, Baby,” a guide to financial literacy, to Kentucky schools and residents upon request at This email address is being protected from spambots. You need JavaScript enabled to view it..

For more information about Kentucky scholarships and grants, visit www.kheaa.com; write KHEAA, P.O. Box 798, Frankfort, KY 40602; or call 800-928-8926, ext. 6-7214.

SurfKY News

sitelogosm© Copyright 2008 - 2018 SurfKY News Group, Inc. All rights reserved.
This material may not be published, broadcast, or rewritten without permission.

Click here to subscribe to receive daily updates by email.

Most Read This Week

Feb 21, 2018 21186

UPDATE: Man ID'd from Morning Shooting

by Doreen Dennis, SurfKY News
Feb 17, 2018 13382

Henderson Authorities Investigating Skeletal Remains Found in Woods

by Doreen Dennis, SurfKY News
Feb 21, 2018 8511

Man Residing in Madisonville Accused of Killing Wife in Florence Basement

by Doreen Dennis, SurfKY News
Feb 18, 2018 8442

Black Ice Results in Twin Bridges Closure

by Nick Risley

Most Read This Month

Feb 14, 2018 54865

UPDATE: Man Found Dead in Henderson County ID'd

by Nick Risley
Feb 05, 2018 40657

UPDATE: 5-Year-Old Succumbs to Injuries from Fire

by Rita Dukes Smith, SurfKY News Director

Weather brought to you by

51°
10°
°F | °C
Scattered Showers
Humidity: 97%
Sat
Thunderstorms
51 | 67
10 | 19
Sun
Scattered Thunderstorms
44 | 66
6 | 18
Mon
Sunny
38 | 61
3 | 16
Tue
Partly Cloudy
38 | 65
3 | 18

Stories Trending Today

shooting 300
Feb 21, 2018 21186

UPDATE: Man ID'd from Morning Shooting

by Doreen Dennis, SurfKY News
Hend County SO car.jpg
Feb 17, 2018 13382

Henderson Authorities Investigating Skeletal Remains Found in Woods

by Doreen Dennis, SurfKY News
Skirmont
Feb 21, 2018 8511

Man Residing in Madisonville Accused of Killing Wife in Florence Basement

by Doreen Dennis, SurfKY News
Hend Black Ice
Feb 18, 2018 8442

Black Ice Results in Twin Bridges Closure

by Nick Risley

Market Report

Market Report brought to you by