Credit Card Debt Solutions

The Truth About Credit Card Debt Among College Students

March 8th, 2008 Subscribe To Our Feed

There is a false belief that college students are sailing through their college life because their parents are paying the bill or they have grants, scholarships or loans that are allowing them a smooth ride. While that may be the case for a few, it’s only is a dream for the majority. The truth is that credit card debt among college students is on the rise simply because it’s the only means to make it through. For many, even with working in addition to their class load, the debt is increasing, as they simply cannot work enough hours to take care of what the loans can’t cover.

Catch 22

Credit card debt among college students often grows simply from the need to pay for housing, for books, for food, and of course, the occasional party or two. Simply trying to survive without having to drop out is causing the growth in the credit card debt. However, as the credit card debt among the college students grows, it is now being reported that they are having to drop out due to the stress encountered from the debt load they are facing.

As A Student

All credit card companies are eager to have your business so it’s easy to be accepted and have one or more cards in your possession. The challenge you will face is to use it properly to avoid debt from spinning out of control. While it seems that you have your whole life ahead of you – and you do – that future will be affected for the good or the bad by the decisions you make today. Late or missed payments on your card can hurt your credit rating which will come back to bite you in the butt in the future. Not fun!

Stick To The Basics

Keeping in mind that you will have to pay that card off – and being that you’re young, credit card interest rates tend to be higher - live within your means now. Stick to a budget, set and keep your priorities by remembering that your future starts today. A few less ‘party’ supplies today could mean a beautiful home in a few years! Credit card debt among college students is growing, that’s a fact, but you don’t have to be counted in the numbers.

As A Parent

To the extent that you are able to speak into your child’s life, help them to see the seriousness of the need to be responsible as a credit card holder. Challenge them to ‘do the math’ so as to understand exactly what it will take to pay the debt off and hopefully help them to see that the greatest way to a bright future is made by making right decisions today.