Settling Credit Card Debt After College | McCarthy Law PLC
October 23, 2014

Settling Credit Card Debt After College

Why Settling Credit Card Debt is So Imperative for Today’s College Graduates

It seems like a dismal future to look forward to for many college students in today’s economy. Not only are recent graduates faced with an unwelcoming job market, they are also piled high in debt. In 2008, a study revealed that almost one in five young people between the ages of eighteen and twenty -four were in “debt hardship.” Today, the average college graduate has nearly $20,000 in debt.

Not surprisingly, college students have become the fastest growing demographic to file bankruptcy, with roughly 19 percent of bankruptcy filings in 2011 made by college students.

Why Are So Many Young People in Debt?

Rising Costs of Tuition

Over the last ten years, the cost of tuition for most public universities has steadily risen roughly six percent per year due to steep cuts in states’ education budget. Students find themselves taking out loans that cover tuition and administrative fees, but leave little leftover to pay for living costs. Because many students choose not to or cannot find work while in school, college students are turning to credit cards to pay for their living expenses.

Some college students use credit cards for everything from school materials to living expenses to tuition itself. Almost one third of students put their tuition on a credit card. A study conducted in 2009 found that over ninety percent of undergraduates used their credit cards for educational expenses such as textbooks and school supplies. These students often charged over $2,000 on direct educational expenses alone.

The Economy Has Limited Familial Support

The recession has hit parents and other family members leaving them unable to aid the students with spending. Parents who would usually be able to support students are finding themselves in tough financial positions due to heavy unemployment rates. Without this financial support, a majority of students are resorting to credit cards.

Aggressive Marketing Campaigns and Early Credit Card Ownership

Consumers are bombarded with advertisements for credit applications on every flight, store website and college campus. Marketing of credit cards continues to expand to target younger populations and studies show this aggressive advertising is working. Many young people are tempted by advertisements and take out a card simply for the promotion. In 2008, half of all college undergraduates had four or more credit cards.

For Many Graduates, Negotiating and Settling Credit Card Debt Can Mean A Renewed Financial Future.

Settling credit card debt may be the best option for many college graduates that leave school to find themselves in entry level jobs and unable to pay back the entirety of their debt. A negotiated debt settlement could save many graduating college students from the devastation of a bankruptcy filing. With a debt settlement, an attorney can negotiate the debt down to a fraction of the amount allegedly owed. This allows the graduate to eliminate credit card debt quicker and for much less money so they can move on with their future.

If you have found yourself buried in credit card debt after graduating college, call the attorneys at McCarthy Law to see if debt settlement can help get you back on track. We provide a free consultation with a lawyer.

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