College Students And Credit Card Debt

A recent survey has shown that college students use credit cards for many reasons including purchasing personal items, paying for living expenses and tuition, and buying clothing.  Over 65% of college students use credit cards and over half have significant credit card debt.  Many college students do not know what their APR is nor can they pay their balances in full.  The conclusion is that college students should be educated about managing credit cards, interest rates, and how to develop good habits now that will save them a lot of money in the long run.

In regard to personal finance and the use of credit, students are lacking knowledge.  The survey suggests that college students should be educated in financial matters to avoid overwhelming debt in the future. Paying for college tuition and expenses with credit cards can be a very costly mistake that can affect the ability to purchase a new home or car, or pay off student loans.  It is crucial for college students to learn to plan for their financial futures and accept the added responsibility of managing credit cards.    55% of all students reported never having taken a financial management class.  As a general rule, college students should learn to make a budget and stick to it, and to use credit cards only in an emergency, not for day-to-day expenses.  Classes devoted to personal finance should be made available to every college student.