A recent study conducted by Nellie Mae, the nation’s leading student finance firm, revealed that the average undergraduate carries a credit card balance of $2,169. According to the study, many students use their credit cards without knowing how the bills will even be paid off. It also showed that many students used credit cards to pay for tuition and books, instead of federal student loans that offer lower interest rates.
Four out of five college students amass nearly $1,000 a year in credit card debt. One cause of credit card debt is college students’ difficulty in adjusting to their newfound financial freedom. Parents and students need to come up with a budget for credit card spending before their child leaves for college. Make sure your college student knows not to use money they do not have, even for a one-time purchase.
Use resources available to keep them on the right path. You and your college student should sign-up for overdraft alerts on all accounts. Online alerts and apps on your Smartphone can help with this.
If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.