Many college students are bogged down by student loan debt, but some also have to worry about paying off their credit card bill too, a new study shows.
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More than a third of college students in the U.S. said they have more than $1,000 in credit card debt, according to a survey by EVERGI and AIG released last week. Researchers discovered that students were using their credit card more and accruing more debt since 2012.
“These unhealthy habits can compound stress and financial burden over time and delay adults in their achievement of their financial goals, decreasing their ability to develop into successful professionals in the workforce,” the study stated.
The survey done on more than 30,000 college students from over 440 institutions found that 53 percent of people who responded said they were the least prepared to manage their money. College students’ credit scores have also taken a hit.
EVERGI and AIG’s survey found that 15 percent of college students said their credit scores suffered because of their late credit card payments.
Less than 32 percent of students said they would start saving for an emergency fund in the next year, while about 60 percent of respondents stated their plans to take out loans to pay for college.
Experts said students should pay off their credit card bills in full, eliminating that debt before they address their student loans, CNBC reported. Monthly interest due to late credit card payments can create a bigger financial burden, especially for those who have student loan debt.