Dying in debt? It's a reality for college students, Ohio State s - WGEM.com: Quincy News, Weather, Sports, and Radio

Dying in debt? It's a reality for college students, Ohio State study says

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QUINCY, Ill. (WGEM) -

Is your college-aged child racking up debt? If they are in college, it's likely happening. But they're also paying it off slower, according to a study conducted by Ohio State University.

The study suggest that younger adults might continue to add up credit card debt into their 70s. Many, the study says, will die still owing money on their credit cards. And that, on average, 5-thousand dollars more in credit card debt than their parents did at their age.

Quincy University Sophomore Tim Hill has his own credit card,  but he said he doesn't always realize how much he's spending until the bill comes in the mail..

"Every once in a while I have to talk to my parents and ask them for the money I spent on my credit card. They would like me to use it a lot less, but it's just easier," he said.

Credit experts said Hill isn't alone, and many young adults can't afford what they charge, but consistently spend above their earnings.

"We have the talk every once in a while, and right after I cut back, but it usually goes back to me just spending more money,"said Hill.

Melissa Clopper with Members First Community Credit Union said that younger people may not realize the long term consequences.

"That can effect their credit score. It can mean not getting approved for a home loan, or paying a higher rate. It can mean not getting approved for a car loan," said Clopper.

Clopper said that the trouble may be in the fine print. "It's very important to understand what you're paying for. When you get that extra 10 percent off is it worth paying 24 percent on the balance that you've now created," she said

For Hill, paying the interest on his bill was a wake up call. He said his dad helped him understand his credit card, a conversation Clopper said is crucial.

 

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