Credit Card Debt - Essay Example

Instead of studying, Leesa has been busy working at a minimum wage job just to pay her mounting credit card debt.
B. Thesis Statement: It may sound outrageous, but student credit card debt can lead to academic failure as well as a lifetime of ill health, and students should complete a course in credit management before applying for a credit card.
C. Preview: What I'm going to present to you in the next few minutes could save you from a lifetime of misery. I will make you aware of the credit card trap with its fine print and show you how to avoid the pitfalls of its seductive lure.

II. Body
A. The need to work to pay for outstanding credit card debt will result in class work that is neglected and create the distraction of worrying about repayment.
1. Students with large credit card debt are often forced to work full-time to make the payments and are less likely to graduate from college.
a. Students who work full-time have a dropout rate that is 10% higher than students who only work part-time (Orszag et al.).
b. 55% of the students that work full-time report that it hurts their studies (Orszag et al.).

2. The constant worry about credit card debt creates a distraction and makes it difficult to concentrate on complex subjects.
a. According to Susan Nolen-Hoeksema, Ph.D., professor of psychology and psychiatry at the University of Michigan, worrying can interfere with our ability to solve problems (qt, in Colina).

Transition: I've shown how student credit card debt can sabotage an education, but the damage doesn't stop there.
B. The stress created by spiraling credit card debt can result in serious health problems that can last a lifetime.
1. The stress from credit card debt can cause heart disease, high blood pressure, diabetes, and even cancer (Lawrence).
a. These medical problems cause more worry and begin a cycle that spirals out of control.

b. The risk is even greater for women where financial problems are a leading cause of suicide (Khaitova).
2. Faced with a future and no education, the problems continue to escalate.
Now that we know the dangers posed by credit card debt, let's look at a way to eliminate the problem.
C. Students who desire a credit card should complete a course in credit management before applying for a credit card.
1. Young students who have never been exposed to credit should be taught how to read the fine print.

a. Credit applicants should understand the basic terms used with credit such as early payment penalty, variable APR, and flexible due dating.
b. Credit card holders need to be aware that one missed payment can result in their interest rate escalating from 2% to 20% on all their cards.
2. We require a licensee for driving, fishing, and bartending, and using credit should be no different.
a. Misused credit can be as dangerous as an automobile.
b. Credit education would help protect this at-risk group from a lifetime of grief.
Transition: Now let's take a look at what we've discussed and see how you can apply it to your situation.

III Conclusion

A. Summary: I've demonstrated the negative effects that out-of-control credit can have on a student's academic performance and health. It can be a problem that has the potential to escalate into a lifetime of agony.
B: Final Appeal: A credit card can be a blessing if you need emergency automobile repair. It can also be a curse if the user doesn't understand the ramifications of making the payments. A course in credit management could instill a sense of responsible use, and an understanding of the fine print, and eliminate the problem of massive student debt. Read More