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.


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...


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.)


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!