Friday, June 5, 2009

Credit Card Debt Statistics And Few More Tips

Do you know that one out of three high school seniors uses credit cards?

A bit of information about the current statistics.

1. 82% of college students carry a monthly debt of under $1,000, and over 59 percent of those students were able to pay their balance off each month.

2. 10% of college students carry a balance of over $7,800 and the average student has a debt of $3,200.

Yet as parents know, credit card debt statistics of teenagers can be deceiving. It may seem nice that those students are able to pay off their debt each month, but only 40 percent of those students actually do so.

That leaves 60 percent of those students that have unpaid credit card debt accumulating interest.

What parents can do about this?
Parents do have a lot of responsibility in terms of financial advices that they can give to their children; specially those who are already holding a credit card.

The most important thing that parents can their child is credit is okay, as long as it is used responsibly. Explain to them that 40 percent of students paying off their cards each month are being responsible and building up great credit. Show them how good credit means that they will be able to pay less for cars, houses, and will even help them get a job one day.

Credit Card Usage is Addictive!

Usage of credit card is quite addictive. Imagine if your child gets hook up with it, they will end up in the hole of debt world.

No statistic will teach your child as much about credit card debt than real world experience. But you may immediately start with their allowance.

Teach them how to budget and save for things that they want. Start off by allowing your child to pick out one item, and then teach them how to save a little every week out of their allowance to buy the items.

Credit Card Company Offers
Many companies now do offer credit cards on teens on high school seniors. Credit card companies do a very good job of making credit seem like no big deal to most teens. They lure teens in with big promises, but forget to tell them about the fine print.

If ever you want to check your kids credit card history, check my post about free credit reports without using a credit card for useful information and advice about it. Make sure to visit more often here at Free Credit Card Reports blog for other important details that I will be posting soon.


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