Student Eliminating Credit Card Debt
55According to a report released by Sallie Mae, the average college student carries more than $3,000 in credit card debt on at least four credit cards. It also reveals that:
- 84% of college students have a credit card
- The average number of credit cards is 4.6
- 21% have balances between $3,000 and $7,000
- 80% were surprised by their balances
- 68% made purchases knowing they didn't have the money to pay the bill
- 92% use their card to pay for school expenses not covered by financial aid
While seniors currently carry the highest average credit card debt at $4,138, freshmen carry an average $2,038. At that rate, current freshmen could very well accumulate balances of $8,000 or more before graduation day.
No doubt, many college students are over their heads in debt and when faced with student loans and living expenses after graduation, the accumulated credit card debt may seem insurmountable.
It is in the best interest of both the borrower as well as the lender to negotiate a viable solution. Credit card companies prefer to avoid bankruptcy because, through bankruptcy, they receive nothing.
College graduates who find themselves drowning in debt can take the following steps to eliminate credit card debt:
- Calculate your total debt including mortgage, car payments, installment loans, tax liabilities, student loans and credit card debt.
- Determine how much you own outright. People who meet requirements for Chapter 7 bankruptcy, or liquidation, may be best-served by that process.
- Determine how much you can realistically afford to pay based on income, assets and debt.
- Prepare a proposal clearly showing how you plan to settle. Make sure that there is an appropriate contract drawn up which outlines the terms you and your creditors agreed on.
- Report warns of growing student debtThe Beatrice Daily Sun5 hours ago
Class of 2008 graduated with average debt of $23K
- Report: Student debt growing problemLincoln Journal Star35 hours ago
College students' debt loads are rising steadily, a new report warns, and their burdens are only aggravated by a recession that has dampened employment hopes for young graduates. And in Nebraska, 67 percent of graduates took out loans to pay for school, the nation's 11th-highest rate.
- Digging out from under a mountain of debtSun-Sentinel1 second ago
A game plan for digging your way out of debt If you're drowning in debt, here's a step-by-step plan for getting yourself out from under.
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