Monday, April 23, 2007

College Students and Debt



Many College students don't think that debt can affect them at such a young age, but it does. There are very high statistics for college students in debt. To me debt is a very scary thing.

A website called Bank Rate talks about debt. It states that an undergraduate is at least 2,200 dollars in debt, and a graduate student is at least 5,800 dollars in debt. Many students take years to pay off their credit cards to get out debt. Credit card debt can also affect a graduates way to pay back student loans. The website also states that a student should only have one card, and to keep the balance low.

Another website called Young Money gave these statistics on students and credit cards. 78% of students have more than one card, 32% of students have four or more cards, and 95% of students carry cards. They gave these alternatives to keep your credit down. Use cash as much as possible. Don't forger that there is a penalty if you go over your limit. The less cards you have equals the less stress in your life. They also say don't forget about your student loans.

Carrying around a credit card I know that I have a huge responsibility for my future. I know that if I mess up I could ruin my future. Every quarter I pay for my books on my card, and when my statement comes I always pay half, when my next paycheck comes I pay the rest. I do not want to be a college student in debt, because i know the card is not free money.

So if you have a credit card think about it wisely. It's not free money and it could play a major part in your life. Think about your future the next time you swipe the pretty piece of plastic.

5 comments:

David said...

Nice post, good information that probably others dont even know about. Personaly I dont have a credit card and I choose not to, mainly because I dont want to have that option to use it on something I want then pay it back. I like to purchase items off the internet and if I had a credit card I would probably be way in debt, I just use my debit card and I only use it if I know I have the money. Overall good post, it gives people a heads up on what they need to worry about.

Derek John Boczkowski said...

Shannon--

A great angle this week! You might wish to change the title to reflect the fact that you are speaking specifically about credit card debt; I think debt incurred from school loans is the first type of debt most college students might surmise from a general title. (Oh, and you are missing the two zeros in the "2,200" figure for undergraduate students.)

5+/5

Derek John Boczkowski said...

Incidentally, I went into credit card debt as a grduate student to buy my girlfriend an engagement ring. It's a debt that, while it took a while to pay off, my wife reminds me that I would happily incur again. :)

Elizabeth said...

Nice topic. I saw your classmates' comments on defective yeti, and was looking at several of your blogs. If you're interested in policy arguments on consumer debt, I read three blogs that you might want to check out:

Warren Reports
Credit Slips
Consumer Law and Policy

I would also strongly recommend this interview with Elizabeth Warren on consumer lending. (She is a law professor at Harvard who teaches contracts and bankruptcy - an excellent lecturer.)

Kris B said...

It took me about 5 years to pay off the debt I incurred on a credit card while in college. The worst part was paying off things that I enjoyed only briefly--like white russians and fried cheese at a campus bar! I do believe it is important to have a credit card (that you pay off regularly, such as every month, or as you do with your books) because you must have a credit history to qualify for other things down the road, such as leases, mortgages, etc. But to never carry a balance more than a month or two is not just a good rule to follow: it's Essential. (I mean, I could've enjoyed my postcollege salary a lot more if I hadn't spent so much of it paying off college-year choices.)

Great post!