| Unfortunately, this is the case for many graduating | | | | necessary mean that you spend too much money, |
| students. | | | | that´s your own private issue. It´s about |
| You may have seen recent reports and news stories | | | | beeing aware and spend sensibly, with a wise use of |
| about enormous student credit card debt. Or worse, | | | | your credit card. Debt can sneak up on you quickly. |
| you may be experiencing it firsthand! You are not | | | | Below are a few tips to keep your debt in check. |
| alone. | | | | Use cash instead of plastic whenever possible. A lunch |
| According to Nellie Mae, a leading provider of higher | | | | at the student union here, a night on the town there...it |
| education loans, a study of last year's student loan | | | | all adds up. Keeping your credit cards in your wallet will |
| applicants showed: | | | | prevent a nasty surprise at the end of the month and |
| Graduate Student Credit Card Debt | | | | when you graduate. |
| - Students with no Credit History 1% | | | | Debit cards and "secured" credit cards are good |
| - Students with a Credit History having no Credit | | | | alternatives for college students. Debit cards allow |
| Cards 4% | | | | retailers to deduct the amount of a purchase |
| - Student with a Credit History and had Credit Cards | | | | immediately from a bank account; they also work at |
| 95% | | | | automated teller machines if a student needs cash. |
| Of the 95% who have credit cards: | | | | Secured credit cards require that the student set up a |
| - Average number of credit cards = 4 | | | | savings account of several hundred dollars as a |
| - Average credit card debt = $4,776 (median=$3,068) | | | | backup against a default. |
| - 20% have credit card debt between $6,000 - $15,000 | | | | Make sure you understand how fast the penalties for |
| - 6% have credit card debt greater than $15,000 | | | | late payments and interest charges can add up on |
| Undergraduate Student Credit Card Debt | | | | credit cards. For example, if you were making just the |
| - Students with no Credit History 12% | | | | minimum 2.5 percent monthly payment on a $1,000 |
| - Students with a Credit History having no Credit | | | | outstanding balance with 19 % interest, it would take |
| Cards 10% | | | | seven years to repay and cost $730 in interest. |
| - Student with a Credit History and had Credit Cards | | | | Don't forget your huge student loan. You may have a |
| 78% | | | | hard time paying off your loan if you're too busy |
| Of the 78% who have credit cards: | | | | paying off your Visa or MasterCard accounts. |
| - 32% have four or more cards | | | | Establish a sound credit history by clever usage and |
| - Average number of credit cards = 3 | | | | investigate thoroughly the credit cards that are |
| - Average credit card debt = $2,748 (median=$1,236) | | | | especially intended for students, or maybe even |
| - 13% have credit card debt between $3,000 - $7,000 | | | | choose a debit card!!! |
| - 9% have credit card debt greater than $7,000 | | | | Be smart - use credit card wisely. |
| So what's the lesson? It´s doen´t | | | | |