While the economy struggles and job prospects look grim for new college graduates, the number of young people burdened by credit card debt is increasing.
According to a study commissioned by Sallie Mae researchers, the average undergraduate carries $3,173 of credit card debt -- the highest level since researchers started collecting data in 1998.
Although the economic crisis is inspiring some people to save more, many are turning to credit cards after losing a job or to pay the bills.
But such debt can grow, especially in a bad job environment, eventually affecting young peoples' quality of life and ability to rent an apartment or buy a car
According to a study commissioned by Sallie Mae researchers, the average undergraduate carries $3,173 of credit card debt -- the highest level since researchers started collecting data in 1998.
Although the economic crisis is inspiring some people to save more, many are turning to credit cards after losing a job or to pay the bills.
But such debt can grow, especially in a bad job environment, eventually affecting young peoples' quality of life and ability to rent an apartment or buy a car
Credit card companies spend billions of dollars marketing to young people through the Internet, television, phone and old-fashioned brochures in the mail offering pre-approval, low interest rates, and even "free money" if you sign up now.
They are especially aggressive on college campuses, buying lists of students from schools and entering into agreements that allow them to set up tables in front of dining areas and activity fairs.
"They were everywhere...like vultures: outside of my dorm, at football games and in the quad. I took their teddy bears, free pizza, tote bags and complicated, convoluted signup forms," Kali Dun, a University of Virginia student, told a congressional hearing on credit card abuses.
By her junior year, Dun had opened three credit cards, and had incurred nearly $3,000 in debt.
Along with the giveaways and incentives, she took also high fees, heavy interest rate burdens, and complex terms.
As a senior, Kali graduated with more than $5,000 in credit card debt.
"They were everywhere...like vultures: outside of my dorm, at football games and in the quad. I took their teddy bears, free pizza, tote bags and complicated, convoluted signup forms," Kali Dun, a University of Virginia student, told a congressional hearing on credit card abuses.
By her junior year, Dun had opened three credit cards, and had incurred nearly $3,000 in debt.
Along with the giveaways and incentives, she took also high fees, heavy interest rate burdens, and complex terms.
As a senior, Kali graduated with more than $5,000 in credit card debt.
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