Recent College Graduates Need to Avoid Racking up Credit Card Debt

This is the second in a blog series on student loan debt and other money matters faced by college graduates. Check out the first blog article in this series, “Pay Back Your Student Loans before the Interest Charges Spiral Out of Control.”

When students finish college and enter the real world, they may be unprepared for the financial obligations that come with getting a job, paying monthly bills like rent, utilities and car payments, and covering other necessary expenses. The reality is that debts can quickly pile up and become overwhelming. Although this is true for anyone, it’s especially likely for recent college graduates who have spent several years relatively insulated from serious financial responsibilities while attending school.

One of the best ways to ensure that you do not end up buried underneath a mountain of debt after leaving college is to learn how to properly manage your personal finances. One money lesson that every college graduate would be best served by understanding is the importance of minimizing credit card debt.

The siren song of credit card companies can be particularly powerful for a young person who has a lot of unexpected expenses and is looking to ease their financial burden as they enter the job market for the first time. In fact, credit card companies are counting on people to not think too hard about signing up for multiple credit cards at the same time – that’s why they constantly send out new credit card offers to prospective clients in the mail, making it as easy as possible for a person already struggling with debt to rack up even more debt.

However, it is important that you not make the mistake of believing that credit cards provide “free” money. The bill will eventually come due, with the debt getting larger and larger as interest accumulates on top of the principal balance and the credit card company imposes heavy financial penalties for late payments.

Moreover, you may find that it is impossible to pay off your credit card debt in a timely fashion while also covering living expenses like rent and car payments, as well as other debts you’ve accumulated, such as student loans. Far too many young people have found themselves facing bankruptcy because they simply didn’t understand the importance of budgeting properly and proceeding with caution when it comes to major financial decisions immediately after leaving school. One of the best ways to avoid credit card debt, and subsequent financial ruin, is to stay on top of your finances, impose strict spending limits on yourself, and avoid signing up for credit cards that you don’t actually need. And if you do find yourself in a difficult financial situation, speak with a qualified financial planner or debt relief attorney who can assist you.

For additional information, read article, “Six Things Every College Graduate Needs to Know about Money.”


If you are dealing with financial issues and need assistance to get out of debt, you should speak with a knowledgeable bankruptcy and debt relief lawyer immediately. Joel R. Spivack is an experienced bankruptcy and debt management attorney who will help you explore your legal options. Contact Mr. Spivack today to schedule a free consultation.

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Attorney Joel R. Spivack is an experienced bankruptcy and residential real estate transactions lawyer in Cherry Hill, New Jersey. Clients come to us for legal services, but what we really provide is peace of mind. For more than 30 years, Attorney Spivack has helped people make wise, informed decisions about bankruptcy filings, debt relief options and residential real estate transactions.
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