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18-21 year olds cite financial stress, juggle 2-3 credit cards in college

Even though 84 percent of college students say they are educated about money management and understand the consequences of debt, 50 percent wish they had a plan to help decrease their debt, according to a new poll for Western Union(R) Payment Services conducted by Javelin Research. The poll reveals that personal finance issues, including debt, have a significant impact on college students.

One in four college students ages 18-21 have two to three credit cards, and nearly one-third (29 percent) say it will be difficult to keep up with expenses at college because they are already in debt. In addition, 15 percent even admit that their grades have suffered as a result of debt they owe.

Aside from their current financial strain, college students are already anticipating more debt in the future: 42 percent surveyed say they will be at least $10,000 in debt by the time they graduate. This includes 22 percent who say they will be at least $30,000 in debt.

“College students can slip into a financial landslide if they don’t have the right money management tools and knowledge at their disposal,” said Royal Cole, executive vice president and general manager of Western Union Payment Services.

“Students who start college with multiple credit cards are under more stress, have difficulty keeping up with expenses, and are more likely to believe they may not graduate due to debt,” explained Cole. “Fortunately, there is a wealth of options for students to learn how to manage their debt and decrease their stress.”

Below, Western Union Payment Services offers money management tips for college students.

Control your Credit Identity

• Avoid “Buy Now, Pay Later” Plans — It’s easy to over-spend when the payment is not due right away.

• Consolidate Expenses on 1-2 Credit Cards — Resist the urge to sign up for every offer you receive.

• Join Opt-out Lists — This decreases your junk mail and credit offers. Visit http://www.optoutprescreen.com/ or call 1-888-5OPT-OUT for more information.

Manage your Bills Responsibly

• Pay Bills on Time — Bad credit impacts your ability to rent an apartment, get additional credit or get hired by a potential employer.

• Arrange Automatic Payments — This helps you manage your finances and saves time.

• Explore All Payment Options — Some payment options allow you to pay in person, by phone or online at the last minute. These same-day payment options can help protect your credit score.

Educate Yourself

• Create a Monthly Budget — This will help keep you on track so you don’t spend beyond your means.

• Research Credit Cards with the Lowest Rates — Visit http://www.cardratings.com/ to review your best options.

• Find Out the Latest Money Management Advice - Sites such as http://www.mint.com/, http://www.youngmoney.com/ or http://www.nfcc.org/ provide financially-savvy tips.

Survey Methodology

In August 2008, Javelin Research polled 502 college students ages 18-24 online. The survey has a margin error of 4.4 percentage points.

Source: Western Union Payment Services