One of the types of debt consumers will sometimes hold is credit card debt. Struggles with credit card debt can have many impacts on a consumer.
Recently, a study was published which had some very troubling results. The study’s results indicate that many college students may be setting themselves up to fail when it comes to credit card debt.
The study was conducted by researchers from several universities and was published in the “International Journal of Business and Social Science.” Reportedly, in this study, researchers conducted a survey of 725 college students. The survey was conducted in 2009. Reportedly, most of the students surveyed in the study were business majors.
The study found that most of the survey’s respondents had credit cards. Reportedly, 70 percent of the college students who were surveyed held at least one credit card. Among the surveyed students who had at least one credit card, about one third had multiple credit cards.
The study also found that the college students who were surveyed who held credit cards generally had surprisingly little knowledge regarding the specifics of the credit cards that they held. According to the study, of the surveyed students who had at least one credit card:
- 70 percent said they did not know what the over-balance-limit fees on their cards were.
- 75 percent said they did not know what late payment charges their cards had.
- 85.4 percent said they did not know what the interest rates on their cards were.
Thus, the study appears to indicate that many college students hold credit cards and that many college students do not know a great deal regarding the specifics of the credit cards they hold. Lack of knowledge of the specifics of held credit cards could potentially lead to individuals facing credit card debt struggles. Thus, it is very worrisome to think that credit card knowledge is so low among college students when the number of college students who hold credit cards is high.
What do you think about the study’s results and what do you think could be done to increase credit card literacy among college students?
Source: Fox Business, “Survey: Students Fail the Credit Card Test,” Martin Merzer, April 16, 2012
