Debt is nothing new for college students in Pittsburgh, throughout Pennsylvania and across the nation. While much of the focus today is on student loan debt with legislators and lenders considering ways to ease that financial burden young people face, another issue that is gaining greater attention is the amount of credit card debt students accrue. When stacked on top of the student loan debt, people can find themselves overwhelmed by debt even before they have framed their college diploma and started looking for a job in their chosen career. Understanding this problem is step one. Finding a strategy to address it often requires legal help.
A recent study indicates that more than one-third of college students across the nation are in some level of credit card debt. These students have at least $1,000 in debt with many increasingly relying on their credit cards since 2012. The study says that students are placing an undue burden on themselves and hindering their financial future. More than 30,000 students took part in the study. It found that more than half stated they were not ready to oversee their finances. Credit scores have also been damaged by this growing trend. 15% stated they had damage to their credit score because they were late with payments.
Fewer than 32% said they were going to save money in case of emergency within the upcoming year. Approximately 60% said they intended to use loans to pay for their schooling. Students are advised to pay their credit cards completely and clear that debt prior to getting student loans. With the fees that accompany late payments on credit cards, they can place themselves in a deep financial hole before considering the student loan crisis.
Just as it is never too early to think about financial well-being, it is also never too early to consider the depth of the problem and think of viable solutions to get out of credit card debt. While there is little that can be done to help those with outstanding student loans they are unable to pay, there are ways to deal with overwhelming credit card debt such as bankruptcy. For those who do not believe that bankruptcy can help them, there could be alternatives that might be useful to get into a better financial situation. Calling a law firm that helps clients with their credit card debt can yield advice on what steps to get back on the right path free of credit card debt.