Credit Card News
Advertising Disclosure is an independent, advertising-supported web site. receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » News » Products » Student Credit Card Debt Grows Faster Than Inflation

Student Credit Card Debt Grows Faster Than Inflation

Add to Favorites:

TD Bank Group a global organization, funded research team, has warned that the credit card debt among college going students in America has distended at a rate faster than that of inflation. With no proper training in household arithmetic, personal finance and budgeting, there is a generation of young graduates who may have to face limited best insurance access, mortgage as well as credit card deals. It will take some time and the job market will recover, but young American`s credit will remain a threat.

Chris Jones, James Marple and Craig Alexander, the group`s economists reviewed the statistics available from Federal Reserve Bank of Cleveland, Sallie Mae and the U.S. Department of Education for the report. It is available free on the website of the TD Bank Group. With the altering relationships between employees and the employers, it is required for most American workforce to save for retirement, rather than depend on any clear benefit pension plans. The report makers found evidence that the majority of students are just able to manage their present expenditure and do not have the means to think about saving for retirement.

It is suggested by the authors of the study that a lack of responsibility leads youngsters to fall deep into debt. They have little knowledge of how defaulted student loans and credit cards can affect their life choices in future. Rather than making some sacrifices and cutting down costs while in school, a large number of college students in America have balances on four to five credit cards. Data from Sallie Mae hints that many families in America don’t talk about finances at home. This leaves students without a strong foundation to enable them to take correct financial decisions.

It has been pointed out by the report that bank branches as well as other financial institutions in the neighborhood can be significant players in enlightening young clients. Financial guides and bankers can inculcate stronger reasoning and math skills in the life style of the very young Americans. According to the authors it will be a productive move to introduce formal financial programs, personally mentored by banking professionals in middle and high school. This will make money management less daunting for the younger generation.

Add to Favorites:

Related News:

Students Need Personal Finance Schooling

By Dar Dowling, Posted: July 29, 2015

Students have given themselves a thumbs down when it comes to managing their money and personal finance skills in a new study, but there is an upside - parents can be big influencers in this area, and give their kids a leg up. Continue reading
Discover Nabs Three Spots on Money Mag’s Best Credit Card List for Third Consecutive Year

By Elizabeth Nelson, Posted: September 27, 2016

The Discover it Card, Discover it Miles Card, and Discover it Secured Card were all listed among the best credit card products on the market by MONEY Magazine, which recently released its Best Credit Cards report for 2016-2017. Continue reading
Frugal Fashionistas Rejoice: Century 21 and Alliance Data Launch New Credit Card

By Elizabeth Nelson, Posted: September 26, 2016

New York City-based bargain department store Century 21 is partnering with Alliance Data to launch a new credit card program. A favorite of fashionable bargain-hunters, Century 21 operates 10 stores across the greater New York City area ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Get 0% Intro APR on Balance Transfers and Purchases for 21 months. After that, the APR will be 12.24%-22.24% based upon your creditworthiness.
For Excellent/Good Credit
1% cash back on select purchases, terms apply
For Fair Credit
Guaranteed $500 Unsecured Credit Limit
For Bad Credit