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College students and credit cards don't mix, but that doesn't stop most college students from running up their card-based debt. Despite the fact that most college students are of above-average intelligence and have strong self-discipline, their young age and relative inexperience in dealing with credit makes it tough to resist running up a large tab on their cards.
Furthermore, students these days are faced with ever-increasing tuition and other expenses. With cash flow tight for many students, their cards become their most convenient resources for buying the things they need to get by in college.
Fortunately, there are other alternatives to credit card use in college. If you would like to learn more about credit card debt among college students, consider these 5 facts you should know:
1. College students are carrying more card debt than ever while in school:
Sallie Mae, a prominent student loan organization in the U.S., has recently found that the average college who has at least one card student carries well over $2,500 in credit card debt.
2. They are also graduating with more debt:
The average college student these days is graduating with about $4,100 in card debt. This is an all-time high since such statistics began being analyzed by Sallie Mae.
3. Carrying a card is a good idea in terms of planning for cash emergencies:
Of course, many students resist giving up their cards because they do not want to be caught in an emergency situation whereby they need to make an important purchase but they do not have enough cash to cover it.
4. These days, students need a co-signer to get a card:
For better or worse, however, these days it is tougher for freshman and sophomore college students to qualify for a credit card. That is because new, strict legislation makes it illegal for large credit card companies to solicit card applications to students under 21.
Still, despite this new legislation, students are finding new ways to get their hands on cards. For example, if as a student you get someone you know to agree to co-sign on the loan with you, you can still get a card. However, this does not solve the root problem: students tend to run up unsecured card debt.
5. A smart alternative is to get a prepaid debit card instead:
A smart way around the use of these cards but while still having a back-up for emergencies in place is to buy pre-paid debit cards instead of credit cards. Debit cards require no application process, and they are not associated in any way (positively or negatively) with the students' credit score. You just pre-pay for the amount you need and go. Then, of course, the student can keep a credit card as a backup for emergencies but only use it when a situation arises.
Consider these 5 facts as you explore the problem of credit card debt among college students and what to do about it in your situation.
Furthermore, students these days are faced with ever-increasing tuition and other expenses. With cash flow tight for many students, their cards become their most convenient resources for buying the things they need to get by in college.
Fortunately, there are other alternatives to credit card use in college. If you would like to learn more about credit card debt among college students, consider these 5 facts you should know:
1. College students are carrying more card debt than ever while in school:
Sallie Mae, a prominent student loan organization in the U.S., has recently found that the average college who has at least one card student carries well over $2,500 in credit card debt.
2. They are also graduating with more debt:
The average college student these days is graduating with about $4,100 in card debt. This is an all-time high since such statistics began being analyzed by Sallie Mae.
3. Carrying a card is a good idea in terms of planning for cash emergencies:
Of course, many students resist giving up their cards because they do not want to be caught in an emergency situation whereby they need to make an important purchase but they do not have enough cash to cover it.
4. These days, students need a co-signer to get a card:
For better or worse, however, these days it is tougher for freshman and sophomore college students to qualify for a credit card. That is because new, strict legislation makes it illegal for large credit card companies to solicit card applications to students under 21.
Still, despite this new legislation, students are finding new ways to get their hands on cards. For example, if as a student you get someone you know to agree to co-sign on the loan with you, you can still get a card. However, this does not solve the root problem: students tend to run up unsecured card debt.
5. A smart alternative is to get a prepaid debit card instead:
A smart way around the use of these cards but while still having a back-up for emergencies in place is to buy pre-paid debit cards instead of credit cards. Debit cards require no application process, and they are not associated in any way (positively or negatively) with the students' credit score. You just pre-pay for the amount you need and go. Then, of course, the student can keep a credit card as a backup for emergencies but only use it when a situation arises.
Consider these 5 facts as you explore the problem of credit card debt among college students and what to do about it in your situation.
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