Essay On Student Debt

2366 Words10 Pages
Credit Card Debt and Student Loans America is faced with many problems on a daily basis. There are the issues of unemployment, racial issues, abortion, gay marriage, and gun control. All of these issues are highly disputed on a daily basis by many people. One issue that is just as important as the others but isn’t discussed as frequently as it should be is the issue of consumer debt – student loans and credit card debt. These issues plague our nation and people need to be more aware of what is actually going on. These problems need to be dealt with. Credit cards are handy to pay for things when you don’t have cash in your wallet; however, the trick is to understand that this card is simply replacing cash. Many don’t have the funds to pay for the things that they wanted and use a credit card to pay for it, and as a result they accumulate debt that they cannot pay for. Add in interest rates that can vary anywhere between the low end of 9.9% to a high end of 24.99%; and you set yourself up for financial trouble. If for instance you put $100.00 on a credit card and do not pay it off within the 30-day grace period; you will then owe $125.00 if you have a 24.99% interest rate.…show more content…
As of 2010, there were almost 610 million credit cards held by consumers. That’s an average of two per person, and you can’t include all of the young people that have no idea what credit cards even are or could even own one. That’s a problem. Just allowing the normal American consumer to have three to four credit cards is asking for trouble. People look at them as instant cash or instant money. In a sense, that is true, as long as they pay their bills off at the end of the month. This is the problem for many American consumers though. As previously stated, only an average of 35% of people pay off their credit card bills each month. This is what adds to the $2.5 trillion consumer debt. People spending money that they do not, in fact,
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