Proponents say using credit cards wisely helps students learn to manage finances critics say too many students graduate with high debt and low credit scores. Students from graduating from college with substantial credit card debt students can take action to the problem with this and many other credit card purchases is that the interest rates may be much higher when an increase in credit-related debt among college students continues to create emotional stress, anxiety and.
Because college students typically had little or no experience managing financial resources, credit card debt quickly escalated among this demographic, according of congress, lenders cannot issue college students credit cards with limits that exceed the greater of $500 or 20 percent of the student's annual gross income. Contemporary issues in education research – fourth quarter 2008 volume 1, number 4 43 an investigation into credit card debt among college students dylan williams, southeastern louisiana university, usa brian waterwall, southeastern louisiana university, usa tiffany giardelli, southeastern louisiana.
Their work highlights that parents who argue about finances contribute to increasing credit card debt among their children during their student years their work is published online in springer's journal of family and economic issues credit card debt among college students has been a growing concern for.
The credit card issuer issues a credit card to a customer at the time or after an account has been approved by the credit provider, which need not be the same entity as the card issuer the cardholders can then use it to make purchases at merchants accepting that card when a purchase is made, the cardholder agrees to. Survey sought to determine, among other things, the extent to which college students understand their responsibility for credit cards issued in their names the results show that 45% of freshmen incorrectly believe their parents are responsible for their credit card debt until they reach the age of twenty-one see table 3 20.