|
|
|
Having saturated the working adult population with credit card offers, credit card companies are now banking on a new market: college students. Under regular credit criteria, many students would not be able to get a card because they have no credit history and little or no income. But the market for young people is valuable, as industry research shows that young consumers remain loyal to their first cards as they get older. Nellie Mae, the student loan agency, found that 78% of college students had credit cards in 2000. Credit card companies have moved on campus to lure college students into obtaining cards. Their aggressive marketing, coupled with students' lack of financial experience or education, leads many students into serious debt.
Warning Signals:
• Undergraduates with credit cards carried an average balance of $2,748 in 2000. (Source: Nellie Mae)
• Half of all college students with credit cards don't pay their balances in full every month.
• 58% of college students reported seeing on-campus credit card marketing tables for two or more days within a one month period at the beginning of the semester.
• On a test of personal finance skills administered to high school seniors, students averaged a score of 57%, an F on any grading scale. Only 5% of the seniors scored a C or better.
(Source: Jump Start, www.jumpstart.org) School Zone: College Students and Credit Cards
U.S. PIRG serves as the national lobbying office for state Public Interest research groups. PIRGs are independent, nonprofit, nonpartisan consumer and environmental advocacy groups with members around the country. U.S. PIRG's website is www.uspirg.org and the special state PIRG credit card education website is www.truthaboutcredit.org.
Sign up for our free eNewsletter Dollar Stretcher Tips.
Looking for an answer to a frugal living question? Click here to ask a Dollar Stretcher Stretchpert!
To subscribe, check the newsletters you wish to receive, enter your email address and then click Subscribe.
Each month one TDS reader will win $100 just for telling us your favorite time or money saving idea. It could be you!
Click here to share your idea.
Recent winners are:
- Michelle from NC
- Matt from CO
- Joan from CT
- Joanne in New York
|
Money problems? Struggling with credit card debt? What you need to know about bankruptcy? Trouble repaying student loans?
|
Copyright 1996 - 2012 "The Dollar Stretcher, Inc." All rights reserved unless specifically noted.
Contact the Dollar Stretcher at:
Dollar Stretcher
PO Box 14160
Bradenton FL 34280
Voice 941-761-7805
Fax 941-761-8301
"The Dollar Stretcher, Inc." does not assume responsibility for advice given. All advice should be weighed against your own abilities and circumstances and applied accordingly. It is up to the reader to determine if advice is safe and suitable for their own situation.
| About Us | Privacy Policy | Writer's Guidelines | Sponsorship | Media | Contact Us |
Dollar Stretcher Community
Forums
Blogs
Also In This Week's Issue
In The Dollar Stretcher Community
Reader Favorites
Newsletters
Email
Print
Contact Editor
RSS Feed
Share
Leave a Comment
