College Students and Credit Card Debt
A recent Zogby poll revealed that nearly one in four (23 percent) college students leave school owing more than $5000 in credit card debt. That’s a pretty disturbing number when you factor in that the majority of those students also owe a substantial amount of money on student loans as well.
What makes it worse is that one in ten reported having $10,000 or more in credit card debt. As if the principle of the balance owed weren’t bad enough, just imagine what the final cost will be when the finance charges are included. Not a pretty picture to say the least.
The funny thing of it is is that approximately 40% of those surveyed said that they originally signed up for the credit card to get a free gift. I guess that gift wasn’t so free after all. When all was said and done only half of that 40% left college without credit card debt.
It is quite unfortunate but many of those making payments will pay only the minimum and will be paying their debt off for many years to come. The credit card issuers are not all concerned because their data shows that most of the students will eventually pay off their debt in full. Which of course, means that the credit card companies will make a lot of money on interest.
Related Information:
- Student Credit Card Debt Reaches Record Highs Student credit card debt continues to mount, reaching record high levels....
- College Student Credit Cards – Know What You Are Getting College student credit cards should be carefully examined and compared before an application is ever submitted....
- Proposed Bill Will Make It Mandatory To Disclose Dangers Of Debt There is a new bill being discussed whereby credit card companies would be forced to educate prospective cardholders on the danger of debt....
- Using Prepaid Credit Cards For Students Students are turning more and more to prepaid credit cards as opposed to traditional, unsecured cards....