The Convenience of Credit Cards Essay

The main problems with student debt are the high monthly payments, high interest, short grace period, and repayment programs that does not apply to everyone. Majority of students can’t pay back loans they have borrowed because they aren’t given enough time to pay them off. Students have at least six months to pay off their debt before they get an increase in interest. Over 75% percent of students have to get loans to pay for their first year of college and more (Quadlin). Debt is something we all have to deal with even parents suffer from them as well.

Credit cards have become increasingly popular world-wide, making it easier to buy now and pay later but are they actually helping or hindering someone’s credit? “Maxed Out” by James D. Scurlock demonstrates how credit cards can hurt someone’s credit, while “Why Won’t Anyone give Me a Credit Card” by Kevin O’Donnell demonstrates how someone may have financial stability to pay off a credit card, but still be consistently denied one by the credit card companies. Owning credit cards is not the problem; the problem is being irresponsible with it.

With the cost of attending even public state schools starting at $20,000 a year, most college graduates will leave with student loan debt. This inevitable debt can already be immense and feel crushing. Credit card debt accumulated in high school is not forgiven by the bank when a student graduates to college. Why would you let your teenager needlessly make their future financial situation worse? Stress surrounding student loan debt has claimed lives. In Oklahoma, two colleges students committed suicide over their inability to pay their debts. They were found dead with their bills beside

The explosion of credit card use among college students has woven itself into the fabric of campus life ultimately impacting how students interact and begin in the financial industry. As students gain more freedom away from home they often begin to experience various social changes. One area in particular that is cause for concern is the number of students incurring credit card debt. Due to growth in credit card usage and the rise of debt, the ideas discussed in this paper represent the growing need to evaluate credit card company solicitation efforts aimed at students and how to begin negotiation to amend these practices. Through mediation, the focus will be to investigate if college students receive ample education on credit and

3. Many college students may be working with credit or debit cards for the first time in their lives, and without proper

I the article, “The Credit Card Company Made Me Do It!” -The Credit Card Industry’s Role in Causing Student Debt” by Carlos Macias. What Carlos writes about is how much College students go in debt when they use credit cards. He talks about how credit card companies prey on students who are in college because they don’t know what how to handle a credit card. He wrote in the article, that the industry makes billions of dollars in profits, and many students are drawn in by the advertising credit card companies use to make college students feel like its easy for anyone to own a credit card. He even said students may even feel pressure from family, peers, and themselves to be responsible adults and try not to live off their parents. Carlos also

Credit cards are one of the many factors that contribute to student debt. A larger proportion of college students rely on credit cards for paying direct academic expenses. ''This includes textbooks, school supplies, and tuition" (Min Zhan 134). Credit cards appear to be a great investment in college, but they are also problematic. Credit cards are related to higher levels of student drop outs from college. Student indebtedness are necessary given the rapid increase needed to meet the financial needs of higher education.

Over the years, the cost of college has hastily increased and the students of this time face a lot of prices to pay; the main two expenses to pay include tuition and living. According to an article by Laitinen, “more than two-thirds of students graduate with debt. And the average amount of debt owed is about $30,000.” (“College Credit? Kill that”) This means that the average person who attends college--whether it be a community, public four-year, or private four-year school—graduates with $30,000 in debt. The amount of debt that these students have when graduating from school is highly important because not only is it debt in general, but it also contributes to future issues the students may have in their financial lives. For example, “…an

According to the retired CPA I interviewed, the three most important concepts for a young college student to understand are: (1) Credit History and Credit Scoring, (2) Financing Charges, and (3) the Annual Percentage Rate (APR) of Interest. As they relate to considering which credit card to use, my interview subject suggested that the most important factor is how using that card might affect my credit history in the long term, what the financing charges could be on purchases that are not paid off immediately or very soon after the initial purchase, particularly as a function of the APR.

In the world of personal finances, credit cards play an important roles in lives of many people. Sometimes, it's out of choice while other times it happens out of necessity. Regardless of why it happens, the numbers surrounding credit card debt are worthy of scrutiny in order to determine whether having or using credit cards is a sound financial decision.

Financial literacy is essential in living in today’s society, therefore it should be taught at a young age because people have been going bankrupt more than ever before. According to Kelly Walsh, “Students between ages 18-25 have at least one credit card. By the time they graduate half of them have four or more credit cards that have an average balance of $3,000” (Walsh). If students were taught at a younger age how credit cards actually work; they would better understand the consequences of debt. For instance, if students were to research different credit

Money is a necessity in life and is a constant worry for college students especially when you take out a $10,000 loan. Financial aid has replaced studying as the biggest worry for college students. The objective of college is to learn and grow as a person, but is limited by financial capabilities which is a big problem for the U.S. education system and prices continue to go up. Main focus is having to focus on rigorous studying, students may also have to work to stay in school. A student is paying college through a $10,000 loan and working a part time job 20 hours a week. John wonders if getting a credit card will help him financially. The best solution is to attain a credit card that has student benefits included and will make it easier to protect and keep track of your money.

Whilst a critical part of consumer spending, credit card companies are constantly accused of malicious legal contracts and schemes to increase profits. Without heavy regulation, these companies have the power to bankrupt millions of Americans that rely on credit cards in their daily lives. However, after the introduction of The Credit Card Act of 2009, these accusations represent an inability to accept responsibility for financial blunders on the consumer’s behalf. Due largely in part to the government’s strict regulations, credit card companies should not be at fault for the student credit card debt crisis. Credit card companies remain blameless for student credit card debt as a result of

Students are graduating with an enormous amount to debt. This is a perfect reason to stop marketing credit cards on college campuses. The average outstanding balance on graduate student credit cards is $8,612, an increase of 10% from the 2003 average of $7,831 (Nellie Mae, 2007). This shows the trend that students are graduating with more debt than just their student loans. Students should not be worrying about any other debt after graduating. With credit card companies preying on students on campus, students will get these credit cards and ruin their financial future after college. Students which are 4 year undergraduates that borrow to pay their education, graduate with an average debt of $24,651 according to The Smart Student Guide to Financial Aid on www.finaid.org. That total with the average credit card debt equals $33,263, which is double the annual income of a minimum wage worker in the state of Maryland. Students will more than likely make less money a year than the total amount of debt they accumulate in college. Why then have credit card companies on campus dimming the potential light these students

In 2016, an accumulation of almost 1.4 trillion dollars of student loan debt was outstanding in America (Kess). Students from all over the nation, and the world for that matter, are going to higher education without the financial ability to do so. One of the few options for financial aid available to these prospective college students is to take out student loans to pay for the high tuition of most universities and colleges. While these loans are a modality for attending higher education, they often come with strings. Along with being several thousand dollars in debt, interest also accumulates into the total amount of the owed financial total. Until these loans are repaid the interest keep accumulating and the debt grows. With debt still affecting students negatively well after they finish their higher education, the price of college tuition should be abated.