College age adults and actual college students have made the biggest gains in filing for bankruptcy in the past five years. The gains that twenty somethings have made in bankruptcy court are not a shock to some in the financial industries. With credit card companies marketing to young and younger consumers a significant number of teenagers have one or more credit cards. 65% of college undergrads have more than one credit card and most post grads are carrying almost $5000 in unsecured credit card balances and quite a few have much more debt. Good number college co-eds are not currently employed or have never had a full-time job.

Bankruptcies and Financial Problems

With bankruptcies and financial problems coming up more and more in recent years managing scholarship funds have come under increased scrutiny amongst college campus counselors. Government is even looking into the problem with state houses looking at legislation to curb the issue of young adult bankruptcies.

Managing Scholarship Funds

Most co-eds are managing their scholarship funds, making financial decisions and making budgets for the first time. Handling money is difficult enough as it is but when young minds are preoccupied with studies and social lives throw in a couple of credit cards and you are asking for problems.

Most Are Loose Spenders with Credit Cards

Most people use credit cards more freely then cash because with cash when it’s gone it’s gone but with credit cards it is like you are not spending the money. This leads to reckless spending in adults how much more with young adults.

Added Expenses Increase Bankruptcies

Then there is interest rates and miscellaneous fees so managing these bills and managing scholarship funds and you can see the correlation with the increase in bankruptcies. This will also affect student ability to get student loans in the future.

Credit Cards Reduce Grades

A university professor in Texas learned that the credit card use of youngsters has increased the amount of time they work and has reduced the amount of time they study and this has resulted in lower grades. So not managing your scholarship fund could ultimately lead you right out of higher education.

Managing Scholarship Funds with Bankruptcies Solutions

Most agree that the real problem solver would be not using credit cards to buy things that you cannot pay for with cash and paying off your balance monthly this way you avoid costly interest and fees. Do not buy meals with student credit cards because they tend to accumulate quickly and add to your purchase balance tipping it over the edge.

Good Advice For Everyone

These ideas are not only good for college students managing their scholarship funds and not going into bankruptcy but it is also good advice for all of us. Right now college debt is almost unavoidable so going into post graduate life with debt is a given but adding bankruptcy to the mix is not the way young adults should start their lives. You can use the guides available on this blog to help you manage and make ends meet.