Do most consumers know the interest rate on their credit card? How about the late payment charge? According to a new study conducted by researchers from five American universities, most college students do not have these answers. The study states that five of six students do not know the interest rate on their credit card and 75% do not know the late payment charge. The study also claims that more than 90% of college students are carrying monthly balances.
Perhaps the most shocking part of the study was that almost all of the 725 students who took part in the study were business majors. Credit card knowledge is probably even worse among the rest of the students in other fields.
Other findings in the study stated that in 2004 the average college student carried $946 in credit card debt. However, by 2009 that number ballooned to over $4,000. These numbers should convince others of the importance of teaching college students how to use credit cards wisely.