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The danger of credit card debt for college graduates

Millions of young people throughout the country have been graduating from college over the last month or so. Many of our Escondido readers may have attended a graduation ceremony, which are usually full of hope for the future. However, as these individuals venture out into the world of employment and managing finances, they may encounter more than a few problems -- particularly when it comes to credit card debt.

For many recent college graduates, securing employment that guarantees an income is an opportunity to start to build credit by applying for credit cards. However, there are several steps that these graduates can either take or avoid that can hurt or help their credit. The first of which is to make sure that they are getting the best interest rate, which may mean switching to another credit card now that employment and income can be verified.

As better terms are sought from credit card companies, graduates will want to make sure that they are avoiding the pitfall of accumulating too much overall debt. After all, most graduates will have to contend with student loan debt on top of credit card debt -- and this can make for a steep hole to climb out of if graduates aren't careful.

Of course, as time goes on we all, hopefully, get better at managing our finances. The same will be true for recent college graduates. There may come a time when the hopes that come with graduation turn into financial challenges. When that happens, these young adults may need to get more information about the benefits of filing for bankruptcy, which is an option that is available to many people who are hoping to discharge debt.

Source: stltoday.com, "The 5 Credit Card Mistakes You'll Make Your First Summer Out of College," Jason Steele, May 31, 2016

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