New study shows college students have financial problems

Many consumers in Illinois are aware of the dangers of using credit cards. Unfortunately, college students are still under the mistaken impression that getting a credit card is the only way they can begin to build a credit history. Credit cards are one of the reasons that some college students have financial problems before they even graduate.

College students may need to know that there are other ways to build credit without having a credit card. That doesn't necessarily mean that college students shouldn't have credit cards, but they need to be taught how to use them responsibly. Having a credit card can provide a sense of security in case of emergency.

A new study shows that college students have more credit card debt than their parents and grandparents before them and that it is increasingly difficult to pay those bills. With that in mind, proper use of a credit card can build credit. Paying off the balance in full at the end of each month is the optimal way to use credit cards even if it's not entirely realistic. In the alternative, making a payment that is double the minimum required may have the same effect.

In today's economy, college students can easily end up with financial problems. Many people in Illinois, including college students, use credit cards in order to survive. When debt becomes overwhelming, consumers may turn to bankruptcy for help. Filing bankruptcy can provide the filer with the opportunity to deal with their financial problems in a way they couldn't otherwise. Bankruptcy may provide a financial fresh start for everyone, including college students.

Source: thelantern.com, "Ohio State study says credit card debt becoming tougher to pay off," Alexandria Chapin, Jan. 23, 2013

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