Stop Student Credit Card When Economic Crisis For Avoiding Family Bankruptcy

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Stop Student Credit Card When Economic Crisis For Avoiding Family Bankruptcy

Submitted by Online Earning on Saturday, 13 June 200912 Comments

1. 2009 gets under way, the economy is still struggling and the financial crisis Still going on.

As 2009 gets under way it’s painfully obvious that the economy is still struggling. Sales are continuing their downward trend, unemployment is rising, and many Americans are still having trouble paying their mortgage. After struggling through 2008, the average consumer is facing the New Year at a financial rock bottom. The best indicator of this sentiment has been the dramatic 50% increase in credit card debt from the last economic downturn in 2000. Americans are now struggling with an outrageously high $970 million in debt via credit cards.

2. Students’ Credit Card Debts still raising fast

Sallie Mae as one of the nations largest student loan organizations just released some statistics. What caught my eye is that the college student is carrying an excess of $3000 in CREDIT CARD debt.

This is what the report shows:

84% of college students have a credit card
The average number of credit cards is 4.6
Half of students have 4 or more credit cards
21% have a balance between $3,000 and $7,000!
19% of college seniors have balances above $7,000
Only 11% of students have a $0 balance
80% have been surprised at their balances
68% have made a purchase knowing they didn’t have the money to pay the bill
92% say they’ve used their card to pay for a college expense not covered by financial aid, mostly textbooks and school supplies

3. When Credit Card Debt Drastically Exceeds Income ( Need Help? )

The chart below clearly shows the growth and discrepancy between average household income and average household credit card debt. A point of clarification. This is income relative to credit card debt ONLY!

creditcarddebtchart

As a conclusion, for Effectively avoid Family Bankruptcy, the parents should be stopped your children’s Student credit card or taught them clearly how to use it.

Regards!

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12 Comments »

pligg.com said:

Stop Student Credit Card When Economic Crisis For Avoiding Family Bankruptcy | Online Earning Guide…

1. 2009 gets under way, the economy is still struggling and the financial crisis Still going on.

As 2009 gets under way it’s painfully obvious that the economy is still struggling. Sales are continuing their downward trend, unemployment is rising, and…

- 15 June 2009 at 9:57 pm

Building Credit in High School | Credit Card News said: