Overview: College students represent a new push for credit card companies. An am
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Question
Overview: College students represent a new push for credit card companies. An amazing 84 percent of students carried at least one credit card in the most recent study of undergraduate card use, and half of college students had four or more cards (Guffey and Loewy, 2012). Credit cards are a contributing factor when students graduate with an average of $20,000 debt. Because they can't buy cars, rent homes, or purchase insurance, graduates with big credit debt see a bleak future for themselves. A local newspaper plans to run a self-help story about college student credit card debt. The editor asks your group to prepare a formal report on the topic of college student credit card debt. Use ABI/INFORM, Factiva, or LexisNexis and the Web to locate basic informationa bout student credit card debt. In a formal report, discuss shared credit cards and other options. Use one or more of the techniques discussed in this chapter to track your sources. Format the report using the headings in the chapter. Each group member should write at least one section of the report, and the team leader or another designee can be responsible for pulling the entire report together
Explanation / Answer
As has been pointed out in the discussion above, college students are plagued with credit card debts. This reduces their credit score and credit ratings and they find it difficult to get themselves car loans or home loans or personal loans in times of requirement. More often than not, college students use credit cards to bridge the gap between the cash inflow and outflow towards expenses. Students do not anticipate prudently while using the card and they do not consider how they will pay off the debt at the time of using their cards. As college students have just tasted financial independence, they tend to overuse their cards. Another reason why students are prolific in their use of credit cards is that they don't pay heed to the high interest rates that credit card companies usually charge.
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