Average College Student Credit Card Debt

Hi All. I'm a recent college grad who is fairly new to the workforce and is ready to get rid of her credit card debt!! I was fortunate enought not to borrow much in student loans (a total of about $9,000), however by grad time I owed about 9 thousand in credit card debt. Now I am ready to get rid of this burden. I know that this sounds horrible, but my situation was very different than that of the average student. I am a mother and was raising my daughter the whole time during college. Instead of working full time I focused on my studies and only worked part time. Needless to say this made everything harder but in the end it was worth it. Also, I'm not looking for an overnight solution. It took me six years to accumulate this debt so I know it wont disappera overnight. I'm just looking for the best way to go about it. Please help!

The amount of people throughout the United States who find themselves in debt continues to rise. For you, raising a child while being a college student made your financial a difficult one. For most, however, debt is the result of extraneous spending, poor money management, or both.

Below is a list of ten tips to getting out of debt. Some are easier to follow than others, but all are designed to help alleviate the problem - so take comfort in the fact that you can solve your debt, though it will be a tough process...

Ten peices of advice from allbusiness.com:
1. Create a realistic monthly budget for your expenses. List all monthly bills and necessities and make sure they are covered by your monthly income. Allow only the money remaining after the bills are paid to be spent elsewhere. Stay within your budget guidelines.
2. Pay off the balance on the credit card with the highest interest rate first (unless the balance on any card exceed 50 percent of your credit limit). First, pay all balances to below 50 percent of the card limit because balances above this level cause your credit score to diminish. Then pay off the balance on the credit card with the highest interest rate. If the account was opened within the past year and you have additional older accounts, close it after it is paid off. Next month do the same with the card that has the next highest interest rates. Continue until you reach the credit card with the most favorable terms (i.e., low interest rates). Use this as your preferred account. You need only four open accounts to establish a positive credit history.
3. Learn to use cash instead of credit cards. Have one primary credit card and use it only for emergencies or major necessities, such as a new refrigerator if the current one stops working. Put your credit card in a safe place, not available for everyday use. Also, do not accept increases on your credit card limit above an amount you can easily pay off in three months.
4. Use direct deposit for your paychecks. Also have a limit on how much you will allow yourself to withdraw each week and month.
5. Cut down on your discretionary expenses. This includes dining out, overusing your cell phone, and other such unnecessary expenses.
6. Evaluate your living situation. Your housing costs should be no more than 33 percent of your household income, including mortgage payments, property tax, and both property and homeowner's insurance. You can shop around for lower insurance rates, refinance your home mortgage, and look for more economical utility plans.
7. Avoid borrowing money to get out of debt, especially consolidation loans. Many people think this is a way of helping them get out of debt. However, consolidation loans are simply a means of combining debt. You could end up losing everything because you’ve tied it all up in one loan. If you must borrow, see if a friend or family member can lend you money, since the interest rates should be low or nonexistent.
8. Contact your creditors and try to work out repayment plans. Many creditors are willing to work with you in a manner that will help them get their money without having to resort to debt collectors.
9. Become a savvy shopper. Look for deals, bargains, and savings. You’d be surprised at how much you can save if you take the time to shop around. Check out the price comparison Web sites such as Shopping.com and BizRate.com.
10. Look for extra ways to make some money. From part-time work to a garage sale to taking in a boarder, there are many ways to bring in some additional income.

If all else fails, seek out help from a debt reduction specialist or counselors [see link below] who can help you formulate a plan for getting out of debt and staying out. Just make sure that you check out the service in advance. Many companies are simply taking advantage of people in debt and charging them high service charges.

For MSN Money's take on credit card debt, follow this link-
http://moneycentral.msn.com/content/Bank ing/creditcardsmarts/P74808.asp

For more advice, these are also helpful allbusiness.com links-
Should I Borrow Money to Get out of Debt: http://www.allbusiness.com/3915481-1.htm l
To Get Matched with a Relief Specialist:
http://www.allbusiness.com/3776688-1.htm l

Good luck in climbing out of debt. Try to modify your personal finance outlook in doing so, and you should be well on your way.

2007-06-05 10:19:01 by true blue

Sanyika Calloway Boyce's appearance on "In the Loop with iVillage"

Hey guys, I'm a 20 yr old college junior and have recently racked up a lot of credit card debt pretty fast. I'm kind of scared about paying it off so I'm curious how much credit card debt (for money spent just on personal stuff, NOT including tuition fees for school, etc.) the average college student has?

I have about $2,500 now... is that a lot???
One note: I do have a job that I got just last month.... I'm gonna be getting about 750 at the end of the month but a portion of that (about 300) goes to rent...
And I got myself into the debt mostly from a lot of traveling to see my bf on the other side of the country but also frivolous things like shopping for clothes, which I'm going to be more careful about from now on... :P

ha 10k cc debt and 90 in student loans but pay my payments on time

2008-04-25 21:13:43 by one x sweet

Price: $22.95

I am a 21 year old College Student with about $30,000.00 worth of Credit Card Debt. I have 7 credit cards with an average APR of 19.6%. I don't have a job right now, but I am in the process of getting one...that being said at best I am going to be making between $10-$12. I have no collateral so taking out a loan is basically out of the question. My parent's won't take out a loan for me and my girlfriend makes $15,000.00 and has a loan out for $8,000.00 right now. I am not sure what to do, does anyone have any ideas?

Check out Dave Ramsey.

He has books and a radio program. He helps people get debt free. And it does not cost you anything (unless you decide to buy his books rather than check them out at the library).

Dave has a strategy he calls "The Debt Snowball". The best way to tackle a large amount of debt is to have a plan.

2008-11-19 15:32:56 by cpwilson123

The bar graph shows freshman at $1585 in debt.

The bar graph represents the average credit card debt for U.s college students. The average credit card debt for juniors exceeds the debt of sophomores by $421, and the average credit card debt for seniors exceeds the debt for sophomores by $1265. The combined credit card debt for a sophomore, a junior and a senior is $6429. Determine the average credit card debt for a sophomore , a junior and a senior.

Let S = debt of a sophomore
S+421 = debt of a junior
S+1265 = debt of a senior
S + (S+421) + (S+1265) = 6429
3S = 6429 - 421 - 1265
3S = 4743
S = 1581

So a sophomore's average debt is $1581.
A junior's is $1581 + $421 = $2002
A senior's is $1581+$1265 = $2846

2009-10-01 15:21:19 by TylerB

I'm about to graduate, and I have no debts (student loans, credit cards, anything), and I have about $7000 in the bank.

I worked almost all years of college to pay off loans/fees, and got bursaries and scholarships too.

Is this average? To have 7k in the bank? Or is it no big deal

No its not average. Most people don't even have that in the bank. You went to college and are graduating with no debt.

I wish I could say that.

2009-02-22 21:07:52 by E Jared