ATAR Notes: Forum
Uni Stuff => General University Discussion and Queries => Topic started by: crawlingvines on January 07, 2019, 06:43:06 pm
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Title says it all :)
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Without any context whatsoever I'd just have said debit card. Why would I bother oweing money and potentially pay more interest when I can start saving money for life and gain out of interest. After all, the next thing after uni is life.
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I'm not yet a uni student so someone can probably better answer however,
I'd 100% say debit. So many people get into debt using credit as it's so easy to spend and not be able to repay and end up with high fees. As a disadvantage for debit you do have to budget and only spend what you already have however I would view this more as an advantage and will lead you to become better with your money as you'll have to budget and save to afford your necessities and luxuries.
Hope this helps.
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I'm a uni student with both a credit and a debit card - Mostly for cash flow purposes. I happen to get paid fortnightly by both of my income sources so in the middle of the off week, sometimes I use Credit to let me keep money in savings and then pay off the card on my next pay cycle. I also use it for big purchases with the same logic. Essentially, I can put more in savings (I have one of those accounts with the bonus interest rate for no withdrawals) because I have the Credit Card as a buffer ;D
However, the gain from that practice is fairly minimal for most people, and it introduces the risk of being charged interest. I pay my credit card off, in full, without fail, and I never put myself in a position where that isn't possible. The bank asks me if I want to raise my limit all the time (in fact, when I applied for the card I was approved for an astronomically large limit that was just insane to offer a uni student with no credit history), that's how they get you. They want you to spend more than you have and not be able to pay it off in full every month - Then the huge interest rate kicks in and they win ;)
I think credit cards are a valuable financial tool if you know what you are doing with them, but are also a huge financial risk if you are even slightly bad with your finances. Lots of (most?) teenagers and young adults shouldn't have them, from what I've seen :) but you do you! If you do get one, get a really low limit and always pay off in full each month ;D
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Personally speaking, i've finished uni and in my 2nd year of working and still to this day don't own a credit card. Most credit cards have at least a 10% interest rate on them (15-20% for most)...
"Spend what you can afford". For a uni student like yourself, I don't see the justification to hold a credit card unless you have significant financial responsibility (e.g. owning or renting a home, paying off a loan etc) where emergency money is essential (then again, if you take out a loan, you should budget to take into account this). That's just me, though. A debit card still gives you the ability to pay and make transactions online/without cash, but it's your own money so there's no interest you pay (perhaps maybe a card transaction fee depending on the bank, but that's it).
So yeah, definitely a debit card for uni students. Don't think it's a wise idea to get a credit card until you have the backing of stable employment or finances. A debit card also teaches you financial independence without having to rely on credit which is definitely better for your overall finances in the long run.
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I'm not a uni student yet (starting in Semester 1, Feb 2019! wooohooooo! :)) but I only have a debit card.
So I guess my only option is...debit card. ;D