New research released this month is showing how wide-spread credit card use is among United States college students. The problem with this is, most of them don't understand how their credit cards work. They don't know their interest rates or other potential fees. Ninety percent of college students hold a monthly balance. When someone holds a balance, they end up paying interest.
These credit cards that many students say are for emergencies only, can easily get out of hand to students and people in Baton Rouge. When someone pays such a high interest rate and continues to charge expenses to their card, they are likely driving themselves further into debt.
Although many credit card offers may be tempting to young people, it is important that they understand the future implications if they are unable to pay their monthly bill.
This spiraling credit card debt crisis can severely harm a Baton Rouge family's future. Speaking with an experienced bankruptcy attorney as soon as a person thinks their debt is out of hand could possibly help lessen the impact that any legal action could have on their financial future.
It is important to understand that when you seek debt relief, you aren't alone. Many people are going through a similar situation. Increased expenses and a high unemployment rate are causing many people to seek help. A portion of the study shows just how bad personal financial situations have gotten in the last decade. The average credit card debt in 2004 was under $1,000 but in 2009 it was over $4,000.
Source: Fox Business, "Survey: Students Fail the Credit Card Test," Martin Merzer, April 16, 2012