Some interesting facts according to Ag Center Research and Extension.
College Students:
• Undergraduate students carry an average of three credit cards each and have an average credit card debt of $2,327 in 2002—a 15 percent decrease from the 2000 average! (Nellie Mae,2002)
• The average college freshman has 2.5 credit cards; by graduation they have almost tripled the number of cards they hold. (Nellie Mae ,2002)
• Graduating students have an average of $20,402 in combined education loan and credit card balances. (Nellie Mae, 2002)
• Graduate students have an average credit card debt of $4,776 and hold an average of four cards each. (Nellie Mae,,2000)
• Twenty-eight percent of students with a credit card roll over debt each month. (Nellie Mae, 2000)
• University administrators state that they lose more students to credit card debt, than to academic failure. (Utah Mentor, 2003; The Voice Digital News, 2003)
Bankruptcies:
• We have recently seen an over $50% increase in bankruptcies among people under age 25.
• 1.4 million families filed for personal bankruptcy in 2001 (American Bankruptcy Institute, 2003)
It's scary the amount of debt young people are getting into. I am no exception and have had to learn the hard way that paying money back is much much harder then NOT spending it the first place. It is so important to understand financial literacy.
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That is really scary! I only have 2 credit cards and I have to try really hard to keep the balances low. I got my credit card so I could build credit history, but I have to be really careful to not let it get out of control.
ReplyDeletegood to know! I know its important to build credit, because having good credit is essential for major purchases. However i was completely unaware of how many other young people were struggling as much with their credit as i am!
ReplyDeleteTry and make more than the minimum payment due..it really helps!
ReplyDeletei try and only use my credit cards only when really needed. keeping the balance low helps a million :)
ReplyDeletewhen trying to bulid credit, use your credit card at least once a month and if possible pay if off the following month or keep the balance below the credit line and be sure to make the minimum payment.
ReplyDeleteThanks for the alarming statistics. Most people have no idea what they are getting into building up peronal debt on their credit cards. It is best to check your account activities and balances online as often as possible. This will help you keep track and make sure there aren't any unauthorized purchases! Also, it is so convenient to pay your bill online.
ReplyDeleteI agree, I utilize on-line banking and check my account everyday.
ReplyDeleteCredit cards can be very scary if you are not smart about using them. You really have to know your own personal limit of what you can afford to purchase on your credit card,not the limit the credit card issuer gives you. I think that is a problem alot of credit card holders have a problem with.
ReplyDeleteAs the parent of a college student, I know how hard it is to make ends meet when you are going to school. Sometimes it's no fun. I also see the endless stream of credit card offers she receives in the mail. They lure you in with the promise of fast money at a low interest rate but when you read the fine print on these offers you will realize that they can often be a wolf in sheeps clothing. Just one late payment can jump that interest rate up to a percentage that barely pays the interest and applies very little to the principal. You just get further and further behind and you may not even be charging on the card anymore. Beware of these offers. Like the original post said, "It is much easier to not spend the money than to try to pay it back".
ReplyDeleteIt scares me to think that some of these college students have no idea what they are getting into by using credit cards for everything instead of trying to budget and being careful about their spending. These days we want what we want now instead of saving until we have the funds to pay for it.
ReplyDeleteFinancial Education is an important subject that should be taught in every high school. Our youth can easily be led into debt because of the methods credit card companies use to promote using their cards.
ReplyDelete