Credit card debt can plague college grads before their first job

06.30.09
By Nicholas Storie

Recent figures highlighting the credit card woes of college graduates shows that getting a diploma doesn't necessarily mean a young person knows how to manage their money.

In a recent interview with the Memphis Commercial Appeal, Ann Berry, educational chairman for the Tennessee Jump$tart coalition, said that before many college-aged Americans are able to get their first job out of school they are already being strangled with credit card debt, noting that 18 to 24-year-olds have the highest rates of bankruptcy in the country.

Berry says that part of the problem is that children aren't shown taught about finance early in life, which can lead to these debt issues as they enter early adulthood.

"We must teach them (high school students) before they go into debt as freshmen in college," said Berry. "The earlier the better, because you need to hear it more than once."

The problem of credit card debt for college students continues to grow as evidenced by a recent report from Sallie Mae. According to the student lender, the average college senior has a credit card balance of $4,100. This is up from the $2,900 in credit card debt the average college senior had in 2004.

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A growing number of college students are facing credit card problems