Dangers of Credit Card Debt

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Dangers of Credit Card Debt
The use and possession of credit cards among college students is are rapidly increasing. This can be attributed to the benefits these cards have, i.e., they are very convenient, come in handy during emergencies, safer to carry around compared to cash and give a record of the purchases done for easy tracking of one’s spending. However, these benefits often come at a cost and if not careful one may get in the short term and long term financial and psychological problems. According to Fay, at least 86% of students in college possess a credit card and the average credit among these students is $4,100 (2). This statistics is concerning, and therefore college students should be aware of some of the risk associated with bad credit card debt.
Credit card increases the chance of one getting into debt since one is able to spend money that they do not own. The convenience of the card tempts one to spend more and at times overspend. Borrowing without paying back increases one’s debt which causse a series of financial, psychological and health problems. These problems include depression, stress-related illnesses and to some extreme cases suicide(Irby 2). This debt may accumulate and hinder or slow one’s ability to achieve other goals in their life, e.g. trying to pay the debt will hinder one from saving. Additionally, one may end up working longer hours, and in a job, they do not like as they try to make more money to pay the debts.

This may affect the time left for one to concentrate on their studies which may negatively affect the academic grades.
Credit card debt also negatively impacts the credit score of an individual. Low credit score translates to difficulty in securing loans in future, and if secured the terms are not favorable. A low credit score can also lead to difficulty in securing employment. According to Vo, accounts that are in debt have a 49% impact on the probability of being hired (2). Additionally, employers are currently considering the “credit scores and credit background checks” of individuals prior to employment (Vo 2). With a job market that is not dynamic characterized by low paying entry jobs, a low credit score therefore risky for college students who are about to graduate since it minimizes the chances of getting employed.
The next phase after graduating college is a tough one and therefore, students should be cautious not to carry the burden of debts to this phase where the primary focus should be getting started off on the right foot. Paying the credit on time is instrumental in reducing the debt that can be accrued from late fees and additional interest. Additionally, personal discipline, budgeting, and planning are vital for any college possessing a credit card to avoid bad debt.
Works Cited
Fay, Bill. “Understanding the Dangers and Benefits of Credit Cards.” CollegeXpress, www.collegexpress.com/articles-and-advice/student-life/articles/living-campus/understanding-dangers-and-benefits-credit-cards/.
Irby, LaToya. “You Can Avoid These 8 Dangers of Credit Cards.” The Balance, 2017, www.thebalance.com/dangers-of-credit-cards-960217.
Vo, Bryan. “Debt: The dangers of credit cards for college student…” Golden Gate Express, 2011, www.bing.com/cr?