In recent years, the total amount of student debt has escalated, leaving currents students and graduates under heaps of student loan and credit card debt for years to come.
In addition, a recent survey found 50 percent of all college students now hold more than four unsecured credit cards, a practice which could be causing increased debt.
With so many payment options, it’s easy for many young people to forget about outstanding account balances and other monthly payments, The Hufftington Post reports. In addition, missing a $10 to $15 payment may not seem like much, students could be causing more damage down the road in the form of higher interest rates and a poor credit score.
While recent legislation, which mandates parents cosign for consumers under the age of 21, may help curb this practice, additional options, such as linking a child to a family account could put parents’ credit at risk, the news source says.
Those looking to avoid future debt may wish to take time to talk to their children about the dangers of missed payments and work with them to establish a plan of financial action for the future.