Undergraduates Face Growing Credit-Card Debt
The credit card is one of the most intensely marketed product in America. Over 6 billion credit-card offers last year in the United States. It is no suprise that the amount of debt undergraduates are facing is growing, and growing quickly.
Intense Marketing & Uneducated Students, a Recipe for Debt:
You’ve got the letter in the mail, the ‘free’ sandwiches at subway, and all kinds of other ads shoved in your face for credit cards. With these aggressive marketing techniques, it’s absolutely no surprise that St. Paul Pioneer Press is reporting that 43% of young people get their 1st taste of credit while in their freshmen year of college. Another 23% of students get their 1st credit card before even entering the realm of post-secondary education.
3 out of four college students now have credit cards, and the average balance on the cards are a shocking $1,585, reported Nellie Mae. This debt level increases every year, but what’s the cause? Many uneducated students view the cards as free money, or slowly build the balance overtime without realizing it until they have $10,000 in credit card debt.
Some colleges are now taking steps to keep their students credit in check, by preventing credit card companies from trying to offer cards on campus and by education campaigns to teach students how to use their credit wisely and responsibly. Read more.
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