| Student Credit Card Debt |
| By Credit Federal |
Published
05/6/2009
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Debt Help
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Student Credit Card Debt
Student credit card debt is rising because of many factors, including extravagant charges.
The average college student has more than four credit cards and carries more than $3,000 in debt. This report was released by Sallie Mae, a student loan provider. Here is additional information in the report:
- 84% of college students have a credit card
- The average number of credit cards is 4.6
- Half of students have 4 or more credit cards
- 21% have a balance between $3,000 and $7,000!
- 19% of college seniors have balances above $7,000
- Only 11% of students have a $0 balance
- 80% have been surprised at their balances
- 68% have made a purchase knowing they didn't have the money to pay the bill.
- 92% say they've used their card to pay for a college expense not covered by financial aid, mostly textbooks and school supplies.
Students don't just use their credit cards to pay for college expenses, they use credit cards to pay for food, clothes, and cosmetics.
About 67% of freshmen students carry a credit card compared to 90% of juniors and 88% of seniors. In 2004 only 42% of freshmen students had a credit card compared to now which is a 60% increase. About 39% of the students aquired credit cards before entering college and 36% during their freshman year.
Credit card companies have hounded for being on college campuses yet only 58% of students say they chose a credit card from a vendor on campus. Only 38% said they chose their credit card from a mail solicitation and 19% got a referral from a parent.
Senior students appear to have the highest average credit card debt around $4,000. Freshmen students carry a debt balance of about $2,000. Using this information, by the time freshmen graduate, they could carry a debt balance of as much as $8,000.
This report raises some concerns - especially since 35% of students indicated they don't talk to their parents about credit cards. Also, these students seemed surprised when they reviewed their credit card balances on their statements. This only indicates the need for credit education before using a credit card. Education may be needed whether it comes from a parent or credit card company.
To payoff credit card balances, consider student loan consolidation to free up monthly money, balance transfer credit card debt to a 0 intro card offer, then use the budget savings to make higher repayments.
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