Thursday, 27 January 2022

Credit Card Debt – A Student’s Story

Credit Card Debt – A Student’s Story
24 Aug

[MUSIC PLAYING] Robyn Beck looks back on her college years with a mixture of pride and regret What I enjoyed about college is that I was able to walk away with a degree and go find a job, but what I regret most is getting a credit card, racking it up

Then getting multiple credit cards and doing the same thing Because now, I have to deal with it now And I'm paying it off now, and it's kind of hard to deal with Robyn graduated with a degree in fine arts and nearly $7,000 in high-interest credit card debt Paying off those cards costs her nearly 20% of her take-home salary every month

Things that I charged on my credit card in college were the spring break vacations, going out to eat with friends numerous times Other things were like materialistic things like clothes, accessories, makeup– all that good stuff trying to keep up with everyone else [LAUGHING] I wish I could do those things now You know? Now, I can't have those things I have to do with what I've got and wait until my shoes are falling apart before I can buy new ones

I can't enjoy the things that I enjoyed in college because I enjoyed them in college I guess, when I was making the purchases in college with my credit card saying, "Oh, I can just pay that off later," I figured I'd be making more money than what I was given through financial aid and through my parents And in reality, you're not I mean, you have to compensate for other things like tax being taken out of your salary, groceries Gas is something I didn't even think about because my parents always paid it

I mean, all those little things, they will add up Robyn is not alone 21% of college students graduate with $7,000 in credit card debt Credit cards are easy to get 83% of college students have at least one, and many students turn to credit cards to finance their wants like clothes, entertainment, and trips

Let's say you have a $2,000 credit card If you just pay the minimum amount each month, it's going to take about eight years to pay off that debt A better plan would be to get a part-time job to pay for the things that you want, and a low-interest education loan would help you cover the costs of tuition, books, and housing It's a financial lesson Robyn says she never got in college but one she's learning now that's she's paying her own bills I heard this phrase– if you live like a professional, like, in college, you'll live like a student when you get out

Because I did live like a professional And now that I've been through the experience, I've noticed I lived an extravagant lifestyle in college when I should be living it now when I have a job and I'm a young adult I think of it this way– I could be making a car payment for what I'm paying for in credit cards

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