The Student Debt Trap

: Chris Lee Law Firm

  Filed under: Debt

credit debtCollege students these days are facing more challenges in managing their debt burdens after graduation than ever before. Although student loan debt has become a 1 trillion industry, personal credit card debt among college graduates isn’t far behind. The trouble caused when students cannot afford to go to college are becoming devastating and leading to an epidemic in the credit industry.

Serious Matters

Unfortunately, credit card companies have found that college students are easy target for credit lines. Looking to find freedom in their finances and operating on limited budgets, many college students fall into the credit card trap all too easy. The result of unmonitored spending is graduating with $5-10,000 in credit card debt, on top of a $25,000 student loan debt bill. With a limited job market, many graduates aren’t able to find adequate employment to sustain these debt payments.

While proactive measures are always the strategy of choice when dealing with debts, it isn’t always feasible. College graduates have limited options for resolving their student loan debts, but do have more freedom when it comes to credit card debt. Credit card negotiations are a good place to start and may be able to arrange for the creditor to lower or suspend payments until financial hardships have passed. Debt settlement is typically not advised unless other options have been attempted and were unsuccessful, but can prove helpful if financial hardship is expected to persist.

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