Page 24 - Payne Research Center ~ Money Matters

P A YN E C E N T E R . OR G
Discussion
The survey results indicate that while a majority of students demonstrate responsible credit card behavior, a significant minority struggle with credit card debt. Paying only the minimum balance or less each month can lead to a rapid accumulation of interest and fees, making it difficult to pay off the debt and potentially damaging students’ credit scores. Students are aggressivly targeted by credit card companies. A large percentage of survey participants reported that they received credit card offers by mail.
The results of this current Financial Well-Being survey are consistent with previous studies on credit card debt among college students. Research by Sallie Mae showed that in 2020, about 30% of students made at least the minimum monthly payment but less than the entire balance of their credit (WalletHub, 2024). The current Financial Well-Being survey also indicates that nearly 30% of students pay only the minimum or less than the full monthly statement balance.
The consistency between the findings of the Financial Well-Being survey and previous research on credit card debt among college students suggests that this is a persistent issue that requires ongoing attention.
The survey results indicate that while a majority The fact that approximately 30% of students consistently report paying only the minimum balance or less than the full balance on their credit cards indicates that this is not a transient problem but rather a systemic one.
These findings underscore the importance of educating students about responsible credit card usage and the potential consequences of accumulating credit card debt. Interventions must be implemented to ensure that students understand the terms and conditions of credit card agreements. Additionally, these efforts should emphasize the impact of interest rates and fees, as well as the importance of paying bills on time and in full. They also need to be aware of the potential risks of overspending and the long- term implications of credit card debt on their financial well-being.
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