Strategies to Reduce Debt
- Pay your bills on time or early.
- Always pay more than the minimum amount due.
- Keep any credit card balances low (50% or less of the credit limit).
- Know what's in your credit report and correct any mistakes.
- Make a written budget and stick to it.
- Save for a rainy day.
Credit Reporting Agencies:
College Facts
Consider This:
- Average debt owed at time of graduation is $20,000.
- Average salary for a new graduate is $30,000.
- College students spend an average of $287 a month on discretionary items.
Wealth Disparities
- African Americans accumulate more than twice the debt of their white counterparts.
- African Americans are at more risk of damaging their financial futures due to poor credit card management.
- African Americans households spend larger percentages of thir incomes paying credit card and other high interest rate debt, limiting the funds that could be set aside for saving and wealth creation.
Student Loan Facts
- Students borrowed $56.8 billion from the government to attend college 2003-2004.
- Students borrowed $10.6 billion from private lenders to attend college 2003-2004.
Harris Interactive Reports
- College students spend almost $200 billion each year.
- College students spend an average of $287 each month on discretionary items (anything other than tuition, room & board, housing, book & school fees).
- Away from home, college students make hundreds of first-time buying decisions independently—decisions that will influence their preferences and buying habits for years.
Key Credit Card Facts
Sources: Emily Olson, Liz Pulliam Weston, Lindsay Deal, Young Money magazine, In Charge Institute of America
- Average credit card debt owed by college student is $3,262.
- By making minimum payments only on this balance, it will take 18 years to repay.
- 10% of students owe more than $7,000 on credit cards.
- Students hold an average of three separate credit cards.