Debt Consolidation Blog

Posts Tagged ‘studebt debts’

College is last free step where after this real life begins. This is stage students should be worried about their education only for which they are responsible. They should at least go for bed even if they can not go for late night drive or a movie without worrying about the utility bills, insurance or a college loans that are costing for education.

Unfortunately, with many students this is not the case, they are loaded with financial troubles as they are accruing with their credit cards. It has been reported that an average debt that a student is carrying is around $7000. It is said that around 20% students got their credit cards during their high school only and 40% got during their first year of their college education. This is increasing with credit card companies coming up with new introductory offers, freebies to lure students.

Surprisingly, according to study reported, it has been found that around 83% of the undergraduate students are carrying at least one credit card with an average balance of $2500.

The increased credit card debt has many affects on students like some students end up drooping their education and work full time only to pay off the credit card debt. Even if they manage to continue education then their inability to pay off the debt will ruin their credit score which ultimately hinder their chances of getting an apartment for rent, cost of insurance and even getting a job. It could even disturb the education due to stress and put psychological affect on students.

The possible reason for this increasing credit card debt may be due to inflation, college tuition fee which has increased on an average of 35% in last five years. The study conducted on students reveal that most of the students using their credit cards only for the sake of paying their college cost like textbooks, supplies tuition fee and other expenses.

At the same time many student credit cards come up with high interest rates and with this you generally end up in paying extra amount depending on how much time you take to repay the amount. Charging high interest rate means you are paying lots of extra amount every month in which interest will be the highest part and principal is less leaving you pay for months to repay the debt.

As the college credit card debt is becoming problematic for students, it is always advisable to follow few rules.

Distinguish between wants and need: people judge with our cost of living like the clothes we wear, style we adopt and places we shop. All these things that push you deep in debt. Many people fall in debt as they are unable to distinguish between their wants and needs and try to live beyond their means before they become graduates from college.

So being a student, sticking only to needs will avoid massive amount of credit card debt during your college education.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice.