Something on credit card debt college students statistics
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Dont Save When You Owe Money.
 People are peculiar animals. We don't always do whats best for us - instead, we do what feels best, and try to wipe out any reasons why it may not be the best thing to do. Possibly that's why there are so many people who have both savings and debts.
Its an Issue of Psychology.
Yes, it makes you feel better to save. Saving makes you feel like you're building a base for your future, whilst paying off what you owe makes you feel like you're throwing your hard cash in to a hole. That money is for the kids education, or for doing up your place of residence, or whatever else - and it's in an account earning a good rate of interest. What could be wrong with that? Lots, if you owe money.
Dont Be Fooled.
There are just about no savings companies that will give you interest rates anywhere near as high as the ones credit cards charge. Heres a question: if you have $10,000 in a savings account realising 5% per year and $5,000 on a credit card at an interest rate of 20% per year, how much hard cash do you have? After only five years, the answer is effectively zero - what you owe would have grown to as much as $12,500, the equivalent sum of money that your savings are now worth.
You might not believe it now, but it really is a good deal better to pay off your debts. If you used half your savings to pay off that debt, youd be in such a better spot that it's truly astonishing. You avert five years of compound interest on the debt, but you still get to hang on to $5,000 in your savings account, making interest - after five years, that's around $6,380.
If youd still prefer to keep your savings intact instead of using them to pay off your debts, ask yourself this elementary question: is your pride worth $6,380 of your familys money?
Think of Your Financial Well-being.
Once you get sufficient cash to pay off your debt, theres absolutely no reason to keep it. Debt is for people who don't have the money, and need to borrow it. Debt costs money, and savings make money - you want as much of your finances as possible to be savings, not debts. If your savings account and credit card are with the same financial institution, then youre in effect paying for the privilege of borrowing your own money from them. Why would you do that?
There are more benefit's to paying off your debt with your own money. Youll be less stressed about your debts, and your credit report will show that you were able to pay everything back - getting you a much smaller interest rate if you ever have to go into debt in the future.
I know it can be hard. You just have to bear in mind that any cash you've saved hasnt really been saved at all. Its money you should have been spending instead of making purchases with a credit card. Yes, it feels much worse to spend money thinking that youre spending away your children's education - but always bear in mind that whenever you use a credit card to spend that same amount of money, youre spending away your future, plus interest. In any case, if you've got the debt, then that money has already been spent - stop denying it to yourself.
2001 Credit Card Usage Analysis Nellie Mae Summary Statistics Credit Card Usage Analysis April 2002. Executive Summary. Undergraduate college students are carrying credit cards in record. NYU Livewire Students Fall for Credit Cards' Lure Credit card companies also target college students because they believe that The statistics are startling. The average credit card debt per student in.
Group Warns Students of Pitfalls of Credit Card Debt. college students about credit card debt and credit card companies. Credit card companies market their services on 1200 college campuses daily. Develop a Credit History During College. statistics and stories about college students and credit card debt. In 2000, 78 percent of undergraduate students had credit cards and the average debt.
Campus Door : Credit Card Debt. Campus Door article Studies indicate that 83 percent of college students have a credit card What's more, students are going into debt on their credit cards. Educating Undergraduates on using Credit Cards A recent analysis of credit card debt from students who applied for The above statistics indicate a growing comfort level with credit card borrowing. |
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