Credit Card Debt

Credit Card Debt

While the majority of students can manage their finances well, still a significant amount of them are not capable. The average credit card debt for a college student is around $3000 and is increasing with each passing year (Sallie Mae 2009). In some cases debt is so severe for students that they actually take their own lives. Also the majority of students who are on academic probation have multiple jobs to try and cover their expenses and pay off their debts. Many students who have already accumulated debts are often more stressed and have a decreased psychological well-being (Norvilitis 2002).
In accordance with the increasing debts among student, studies now show that students who obtain their credit cards on-campus are more likely to have higher balances. Students who receive their credit cards on-campus are also more likely to have their balances roll over from month to month. The CEO of LowCards.com says, “Despite young adults being perceived as a high-risk demographic, it's still very profitable for issuers to go after them.” He goes on to explain that students usually keep their first credit cards into adulthood and the ones who cannot pay the money back are usually bailed out by their parents (Dickler 2008).
Before one can hope to fix the debt problem that is sweeping the nation from Berkley to Brown, one must understand the causes of debt. One major cause of debt amongst students is the cost of education and students not having any other means for paying for it. Many students also have the false assumption that they will easily be able to get out of debt as soon as they graduate from college. Unfortunately, many students do not realize that they will not be able to pay the amount of debt they have accumulated and the high interest rates on top of that. Jobs are also becoming scare for students who are right out of college as the economy is falling. The biggest cause of debt is simply lack of knowledge by students all around. Students need more...

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