One in Four College Students Graduates with $5,000 in Credit Card Debt

A new survey conducted by TrueCredit.com and Zogby International found that one in four college students (23 percent) left college with more than $5,000 in credit card debt.

One in 10 respondents noted that they owed more than $10,000 in credit card debt after college, which is surely riddled with finance charges as well.

Sadly, four in 10 students said they signed up for credit cards just to get the free gift, which is often just a 50 cent candy bar or a cheap t-shirt.

Of those students that opted for the gift, just over half left college with credit card debt, something that could have been avoided if temptations weren’t readily available on campus.

A survey conducted by Nellie Mae in 2007 found that average credit card debt for college students was roughly $2,800, which could take up to 18 years to be paid off if only the minimum payments were made.

Apparently credit card issuers aren’t concerned with these levels of debt because analysis performed by the companies probably found that most students eventually make good on the debt, often paying loads of interest in the process.

The survey makes it clear that card issuers should nix the free gifts on campus and lower available credit lines to students.

But it seems to be such a profitable niche that it’s unlikely anything will change unless default rates rise to an unprofitable level.

If you’re a college student, learn more about how to handle a credit card properly.

Related Topics:

1. College Students and Credit Card Debt
2. Survey Finds Credit Card Use Rampant on Campus
3. New Law to Corral Credit Card Companies on Campus
4. Colleges and Credit Card Companies Have Cozy Relationship
5. Credit Card Debt on the Rise