Credit card companies make use of massive marketing campaigns of which you, as a college student, are constantly a target of. Students are inundated with credit card offers through the mail, internet, and even on campus that often lure them with free t-shirts, coffee mugs, and other gifts. These offers may also include a low introductory teaser interest rate. It is no surprise then that credit card use among college students is at an all time high and still rising. According to a study by Nellie Mae, in 2001 83% of college undergraduates owned a credit card, compared to just 67% in 1998. What is even more telling is that 96% of all college seniors own a credit card. The average number of cards owned by college students is 4.25, with seniors having a whopping average of 6.13 cards.

Simply owning a credit card, of course, is not a bad thing. Credit cards are often convenient and sometimes even necessary. However, many college students are simply not educated on the drawbacks and true expenses of using credit and, as a result, often misuse their credit. This can be seen in the significant credit card balances carried b

y many students. According to Nellie Mae, the average credit card debt among college students is $2,327, with a 27% of all students having a balance greater than $3,000. As you might expect, seniors have even larger amounts of debt. The average credit card balance among seniors is $3,262, with 40% carrying a balance greater than $3,000. In fact, nearly 1 in 10 seniors has a balance exceeding $7,000. The number of cards owned and the average debt carried increase steadily as a student progresses through college.

Excessive credit card debt is a serious problem. Particularly when combined with large student loan debts, credit card debt can cause a serious financial burden for recent graduates.

Tell Your Friend