1
|
Debt problems can lead to depression, which affects study habits,
academic performance and retention rates.
|
2
|
Unfortunately, in a few extreme cases, the stress associated with
credit card debt has been a factor in student suicides.
|
3
|
People stressed about debt (particularly credit card debt) are
more prone to heart attacks, insomnia and explosive emotions.
|
4
|
Some studies suggest that those students with credit card balances
in excess of $1000 drink more, smoke more, use more prescriptions
for depression and have lower grade point averages than those who
don't carry credit card debt.
|
5
|
Debt can stick with students long after graduation. Debt ridden
students interested in advanced degrees may not be able to secure
graduate loans. Potential landlords, and some employers, routinely
review credit histories.
|
6
|
Colleges and universities are the one group that makes money out
of the credit card industry without bearing any responsibility for
educating the students about the possible pitfalls and the devastating
effect bad credit can have on their financial future. In return
for lucrative fees, many colleges allow the banks and credit card
companies to hawk their cards right on campus.
|
7
|
Many young adults have been forced by long-term financial problems
to file for bankruptcy. In the years 1991-1999, there was a 50%
increase in bankruptcy filings for people under 25.
|
8
|
Filing bankruptcy can severely damage your credit ratings for years.
A bad credit rating may result in an inability to obtain a mortgage,
a car loan or any other extension of credit.
|
9
|
Companies offer student "teaser" interest rates of 5
to 7 percent and quickly increase them sometimes as high as 20%
or even more for those who miss payments or receive cash advances.
|
10
|
Missing payments, or making late payments, can result in increased
interest rates, late fees of up to $29 each billing cycle and most
importantly reporting to a credit agency who will in turn include
it on your credit report, which will be seen by all future prospective
lenders.
|
|
|
Call the Securities Division Hotline Toll-Free at 1-800-269-5428
|
