Student Credit Card Debt-Rising at an Alarming Rate

Over the past few decades more and more students are graduating with up to $10,000 or more in student credit card debt. This has become more and more alarming as students have been charging for items they cannot possibly pay for. Most colleges believe student credit card debt is an unfortunate result of poor financial management.

Lawmakers have seen it in a different light; some states have tried to ban credit card companies from campuses citing that the epidemic of high debt is contributed by the ease of obtaining a credit card. Credit card companies like to swarm most colleges during the first week of school looking for students who are willing to go into debt just by handing over a student ID and a drivers license.

Student credit card debt has made some colleges offer financial responsibility classes and workshops for freshmen. Since most undergrads have yet begun to earn a decent living to support their debts, many graduates leave college with large student loans and credit cards bills that often end them in bankruptcy court. This epidemic also reaches out into high Schools as well.

There are new student credit card debts that some lenders are willing to extend by going after seniors in high school. The mindset behind preying on the unprepared is that the parent should take a positive role in teaching their kids about credit by making the parent financially responsible. Parents are asked to co-sign these applications so they are legally responsible for the debts their children cannot pay.

In the past few years, there has been a wave of prepaid credit cards made available for kids who need to learn more financial responsibility. Usually funded through a parent's credit card, a prepaid credit card has a certain dollar limit attached to them. Once the credits have been used up, these cards have to be funded again by the parent and this lets the parent know exactly what the child is spending their money on. Analyse the benefits each credit card company has to offer you and stack them up against each other so that you can choose the one that is right for you.