The average score was fifty-seven percent ("Undergraduate Students and Credit Cards" 9). On most grading scales fifty-seven percent is failing, which means the averages high school graduate would fail a test on credit and money management. This clearly shows that the majority of high school graduates are not ready for credit cards. The lack of education in finances and credit often leads many college students into a great amount of debt.
Many college students do find their way into debt, and once they do it is hard for them to get out. According to the article "Credit Card Debt Stalks Students", the average student with a credit card has a total debt of $3,262, and almost two-thirds of college seniors have a balance between $3,000 and $7,000 (Rosen 1). When students get into debt, it is very hard to get out; students usually do not have a lot of income, and they have other bills to pay, such as tuition. Interest rates are high, and penalties for late payments are costly. One mistake that many young people make is paying only the minimum amount due on their credit cards, which leads to interest charges and deeper debt. .
The debt burden carried by many students can also hurt their future in other ways. When graduates finally start making their income, they will have many things that they need to be using their income on, like college loans, new cars, a home, and a business wardrobe. Being able to afford these things will be hard to do when a person also has to pay credit card debts. Many young workers choose to delay saving for their retirement. An article in the Chicago Tribune shows a good example of this; it states that "Eric" has $7,000 in credit debt, but he recently got a new job. He can't afford to pay off his credit cards while contributing to his 401(k) plan at the same time. Since the credit card company is charging eighteen percent interest, he decides to pay them off.