Average College Student Credit Card Debt
by: Tom Tessin

Before you apply for a student credit card or you already have one, you may want to check out the statistics before you fill out that application. If you already carry a card, you may want to think twice about over using it. Credit card debt has been a problem since the beginning and the only way you can stop it is by self-motivation. Without this, you can find yourself getting into that glorified hole of debt.

Each year, college students build up more than $2,500 in debt. This may not sound like a lot to you but if you're working a part time job making $8 a hour, you can see how this is going to add up. Just remember that you're going to pay interest on this credit card and this figure can range anywhere from ten percent and beyond. This is why it's important to pay your bill off in time.

To put the minimum payment in perspective, if you had a one thousand dollar bill and paid the minimum payment for that bill, it would take you over twelve years to pay it off. In the long run, you would pay over one thousand dollars in interest! This figure is based upon an eighteen percent APR rate. This rate is the average rate for college student credit cards.

Students aren't the only one's that carry debt. Statistics show that graduates carry even more debt, which is around $5,000 which is double of the average $2,500 a current student carries on average. If you thought $2,500 is a lot, just imagine double that.

The purpose of this debt article is to show you how debt can get out of hand. Students tend to sign up for a credit card because a company will come to campus offering a free backpack. After they receive the credit card, they treat it as credit and not cash. This is a big no no. When you have a credit card, make sure that you have the money for the bill at the end of the month, this is the most important issue. If you can follow these guidelines, you should be able to avoid that hole of debt road.

Even though some people give the credit card industry a bad name, over fifty percent of all college students pay off their bills monthly. What can play factor to this? Experts say that parents play a big role to this. If parents educate their kids early with the proper advice, this can lead to a more secure financial future. It's important that parents show their kids the importance of money. It's never to early to start!

I hope these statistics open your eyes when it comes to debt. Student credit card debt isn't a joke and it should be taken very seriously. If you want to avoid this trap, follow the steps we mentioned above. If you do so, you will find that you'll be able to live a debt free life.