Credit Card Bankruptcies On The Rise

CREDIT CARD BANKRUPTCIES ON THE RISEThe financial challenges that modern graduates view are discouraging There are many childly people who for bankruptcy by the time they graduate or when they r separately the age of 22 or 23 . wherefore do many fresh graduates go into recognise phone card bankruptcy at such young ageThe typical recognise card has an bet rate of 15 percent , tally to Cardweb .com . That means for e real 100 a person charges on his doctrine card , he recompenses an extra 15 on top if it takes a year to pay the write up . If a credit card holder misses a payment , he could influence himself in the predicament of having a default interest rate , which can run as high as 35 percent on some cards . With that credit card , the holder faces a number of charges , such as annual fees , cash-advance fees , and finance charges on the outstanding part of the bill , late payments , and over-the-limit penaltiesAccording to Cardweb .com , the average senior learner who graduated in 2007 has 8 ,700 in credit card debt . This is more than forked that the average graduate student in 2006 held which is 4 ,100 . It is very alarming that a high percentage of young Americans find themselves in financial crisis . National statistics battle array that bankruptcies among young adults ages 18 to 24 increased by 96 during the 1990s . Studies show also that it would take up to 26 years to pay off a 5 ,000 credit card debt at the average 16 percent interest rate , if entirely the minimum 2 percent payment is made each month , which is typical for a new graduate .It is verbalize that the U .S . college industry produces about a million fresh graduates every year . A high percentage of these college graduates go into credit card bankruptcies because of student loans that they have acquired when they were still in college . They borrow money from their credit cards in to remain up their dues in student loans .

A new consider suggests that rising tutelages , high borrowing limits on government loans and a new wave of low-income students have pushed the average debt burden of college graduates higher as more students from all income groups borrow more to finance their undergraduate educationsAccording to Project on Student Debt based on NCES National Postsecondary Student Aids Study compiled by Jacob Hogue-Morgenstern thither is one in every four undergraduate student who use a credit card to pay for their tuition fees . Millions of graduate students are saddled with the problem of paying loans that helped them go through collegeQuite a number of fresh graduates also go into bankruptcy because of over-spending on credit cards . Instead of employ these cards for emergency situations , they are tempted to purchase on credit majority of expenses like food , transportation , entertainment , technology , and clothing . Since they may not have proper stage setting about financial management , they may not be able to think about the consequences while they are apply their...If you want to get a full essay, order it on our website: Orderessay

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