Many New York college students go off to their academic institutions each fall with plans to be fiscally responsible. After working through the summer to earn money they know how quickly their money can dry up once back at school. Although some students stick to their plans and learn how to budget, others get caught up in their purchases and find themselves relying on other forms of monetary support to get through the year.
One resource that many students utilize is a credit card. According to the College Parents of America and financial lender Sallie Mae, 84 percent of all college students have at least one credit card. Around one out of every two students has at least four credit cards and on average about two out of every five students has a credit card before starting his first year of college. Fewer than five percent of students go to college without any kind of credit history.
The ubiquitous presence of credit cards on college campuses also contributes to statistics related to credit card debt. The average college student carries more than $3,000 in credit card debt and one out of every five students has a balance between $3,000 and $7,000. College graduates average just over $4,000 in credit card debt when they leave school with their degrees.
Carrying thousands of dollars in credit card debt can be challenging for new college graduates. Some young people start their adult lives in unemployment and may grow their debt because they have no other means of supporting themselves. Others may find that their fixed expenses for housing and transportation eat up all of their salaries and that credit card use is the only way they can pay for other expenditures.
Credit card debt is a problem for many people, including those just starting out on their own. If not managed properly a credit card can become a financial liability when past due payments become legal headaches. Individuals facing credit card debt have options for controlling their obligations and finding financial relief from their economic burdens.