Student Credit Card Debt on the Rise
A new study to be released Monday by Sallie Mae, finds that the average undergraduate carried $3,173 in credit card debt last year, the highest recorded to date.
According to the USA Today article, the higher the grade level, the higher the debt.  College seniors who carry a credit card had an average of $4,138 in credit card debt in 2008! With the recent increases in interest rates due to the bad economy, this debt is likely to be far worse in 2009.
What does this mean?
Students are using their credit cards for more then just emergency purchases.  With the increase of tuition, gas prices, groceries, etc, students are using their cards for everyday expenses as well as school expenses.  This is very, very dangerous.  Student cards have very high rates to begin with, and it will take you years to pay off your debt once you graduate.  As we stress over and over again, only use your credit card for small purchases and pay it off in full each month.  This will not only keep you out of debt but will also help build your credit score.
What can you do?
If you are one of the unfortunate students mentioned above that have found themselves swimming in debt at an early age, don’t worry – there are many things you can do to manage your debt. Â For starters, read our article “Three ways to get out of debt.”
If you are an underclassmen, apply for scholarships! Â You never know when you will need the money, and this is money that you do not have to pay back! Â We have two great scholarship options for you that do not cost you a thing:
Student Scholarship Search – An online directory of scholarships updated on a daily basis.
ScholarshipPoints – A free scholarship community where members earn points towards monthly scholarships up to $10,000
Take action early! Â You will be thanking yourselves for years to come.
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