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Many students have, don't understand credit card debt

Going to college is a big life change for many students. It means more independence, including more financial independence for most students. According to a new study, 70 percent of students in the United States have credit cards, and less than 10 percent of those students pay off their credit cards each month.

Furthering the concern about out of control spending and credit card debt in Michigan, many of these students aren't aware of the interest rate on their credit cards and most don't know their late payment fees. The lack of knowledge about credit cards and credit card debt by the youth of today might foreshadow problems in the future.

In the past few years, many people have experienced financial difficulty and are more aware of their personal financial situation. This startling study shows that many college students might find themselves struggling to pay their credit card bills.

An increase in the average amount of credit card debt by college students in recent years might also cause them to seek debt relief help after college. This debt coupled with low employment numbers of college graduates and student loan debt might overwhelm students after graduation. When seeking help for out of control credit card debt, it is important to start asking questions as soon as a situation seems unmanageable.

While most student loan debt is not dischargeable in bankruptcy court, other types of debt might be. Speaking with an experienced bankruptcy attorney might be a wise decision to help ensure your person financial freedom in the future.

Source: Fox Business, "Survey: Students Fail the Credit Card Test," Martin Merzer, April 16, 2012

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