|College Student Debt
Hawaii Pacific University
Losing sleep wondering how to pay off credit card debt? Having
even one credit card can cause a serious problem, because of the
interest rate credit card balances carry.
Regularly, on Fort Street Mall,
solicitors for Discover, Visa, and Master Card invite students to
apply. They make it easy by bribing students with T-shirts,
water bottles, and even calling cards.
From a student's point of view, credit
cards are tempting. Many have just graduated from high school,
and for the first time in their lives they are independent - no
parents around to control their spending.
Or to cover expenses. College
students often rely on credit cards when low on cash.
About 78 percent of undergraduate
college students have at least one credit card, according to a Web
site that tracks student credit, Sallie Mae.com (Sep 28, 2001).
Establishing credit is not a bad thing
to do; however, overusing a credit card or having a credit card can
bring financial difficulties as debts mount up. If you do choose
to apply for a credit card, go with a card that requires no annual
fee, six-month free interest, and a student rate of 9.9 percent
When using a credit card be responsible
and spend wisely. Don't buy every item in sight. the more
debt you incur, the harder time you will have paying it.
Especially since most graduates start at less than$40,000 dollars
Sallie Mae, shows that undergraduates
in the year 2000 carried an average of $2,748 dollars in credit card
debt. If the annual percentage rate on a credit card is 18
percent and a student makes only a minimum monthly payment of between
two and three percent of the balance, it will take years to pay off
$2,748 assuming no additional charges.