<p>Students</a> snared by high-interest debt - The Boston Globe</p>
<p>"Average credit card debt among graduating college seniors increased to more than $4,100 last year from $2,900, in 2004 ..."</p>
<p>I believe it. I’m roughly $2,000 in the hole right now and I’m only a rising junior, but hopefully I’ll be able to take care of it all this year. I haven’t used my credit cards in months, but their balances keep increasing because the interest and fees exceed my payments each month. It is pretty frustrating.</p>
<p>i refuse to take out a credit card.
if anything they should only be used for emergency</p>
<p>Honestly, I can’t understand how some people get into that high of debt. Are students so stupid and irresponsible that they don’t read the contract when signing up for a service? It’s not the credit card provider’s responsibility to insure that the students understand what interest rates are and how your credit line works. It’s shocking almost that these students can obtain higher education but have no common sense when it comes to their financial life.</p>
<p>I’ve never been in credit card debt. The only loan I have is a car loan which is being paid off at 3.9% interest. Lucky for me, I make monthly payments on time and can actually afford to pay it back. I read the fine print (unlike most people) and have a respectable credit line for my age.</p>
<p>I have no credit card debt. I never carry a balance past the grace period; I always pay my balance in full. Consequently, I am never charged any interest.</p>
<p>My credit limit is only $500. I think it should increase soon, I’ve had it for 2 years and use it monthly and haven’t been late. I only use it to build credit, and use it rather than my debit card, and then just pay it with my debit…</p>
<p>rsala004, in an ideal world we would only use them for emergency, and people wouldn’t need credit cards at all, but we all need to start building credit, because that’s just the way the U.S. works. Quickest way is with a credit card. I don’t like it at all, and I think the dependence on credit is ridiculous and so is the whole system, but I have my credit card, and I use it every month, normally on small purchases. I use it too for online purchases, because I don’t like putting in my debit card info online. :O</p>
<p>I’m also confused as to why they’re in that much credit card debt. :\ I only use it when I know I have the money to cover it. When I do, on my little dilly dad, I deduct the amount I spend right away from the money in my checking account, so I don’t spend that money, and I always pay my balance in full. That could be different in the coming years, but I hope not, and I don’t want it to be.</p>
<p>Well I imagine if they’re starting a job some where and need to pay a deposit for living or to get clothes for work, and have parents that can’t help them out, they need to put it on their credit card.</p>
<p>This is my first month that I can’t pay my entire credit card. I needed to put $1200 down on an apartment for school, and needed $400 as a deposit to hold my spot at my transfer school. So I just don’t have enough money to pay off my credit card this month (which I use mostly for groceries and gas). Stuff adds up, I imagine.</p>
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That’s a silly view. What about investments? This includes going to college, starting a business…Few millionaires could be where they are without taking on some debt early on.</p>
<p>Though I do think that most Americans misuse credit cards.</p>
<p>“That’s a silly view. What about investments?”</p>
<p>You’re paying 18 - 30 percent interest on your money. You can do far better with other forms of debt.</p>
<p>“This includes going to college, starting a business…”</p>
<p>College Loan rates are a lot lower than credit card rates.</p>
<p>Starting a business - exhaust every other avenue first.</p>
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<p>Read The Millionaire Next Door.</p>
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<p>A lot of them are on this thread.</p>
<p>i actually don’t have a credit card. i’ll probably get one soon, though, just so i can establish a line of credit. i plan to use it infrequently and pay it in full every month.</p>
<p>if you’re never late with your payments and you always pay in full, you actually MAKE money from credit cards. I don’t understand why people buy things they can’t afford. They’re just going to end up paying 2x as much for the thing.</p>
<p>^The logic behind that idea is not coming to me. How do you make money from using a credit card?</p>
<p>You can get reward points or miles or whatever. I use a credit card to pay for just about everything and then pay it off at the end of the month. After about a year I got a couple decent jackets.</p>
<p>Ah, that makes sense. I didn’t think about it that way. :]</p>
<p>that’s a lot of debt, but not surprising i suppose. personally i use my credit card for anything i can just to rack up points. i always pay on time. if i can’t afford it, i don’t buy it. i have yet to pay interest on my credit card and with time the credit limit has increased.</p>
<p>CCs should be illegal on college campuses</p>
<p>why should they be illegal? it’s not the fault of the credit card companies that students can’t budget themselves</p>
<p>Well then there should be regulations guidelining what they can and can’t say. I’m sure not all of them do it but some companies exploit students. Sad but true.</p>
<p>As far as I know, credit card companies don’t lie. It’s just that some people don’t know how credit cards work and how the companies make money.</p>
<p>Simply put, a credit card gives you access to short-term debt with a variable interest rate. If you pay off the debt before the due date, your interest rate is zero. You’re not charged any interest if you pay off your balance before it’s due. Now, if you don’t pay the entire balance off before the deadline, then and only then will you be charged interest.</p>