AFTER COLLEGE: THINK THE JOB MARKET IS SCARY — CREDIT CARD DEBT AND OTHER DEBT IS SCARIER

Take Charge America Offers Some Tips for the Grads to Get a Good Handle on Debt

Phoenix, Ariz. (May 21, 2004)...For many college students in the United States, graduation marks a major milestone in their lives. Eager to step into the real world with a degree in hand, college graduates usually have one concern on their minds — finding a full-time job.

While the job hunt may make graduates uneasy, Mike Sullivan, director of education for Phoenix-based Take Charge America (TCA), one of the oldest consumer credit counseling services in the U.S., says college graduates also should be concerned about the future direction of their finances. Sullivan says their company receives a very steady flow of adult callers soon after the college years (mid-twenties in age — usually ages 24-25) — asking for financial assistance. He says many of these situations can easily be avoided if these individuals did some financial planning and strategizing — even a little — in their earlier years.

Sullivan provides the following recommendations in regards to what every new graduate needs to or should know:

1. Don’t be easily influenced by the availability of credit cards — College students and recent graduates usually get inundated with a regular flow of credit card applications, offering “great deals” and “free stuff” to entice them. Beware of these promotional gimmicks. NOTE: The ideal number of credit cards that college graduates should have is ONLY one or two at the maximum — and the credit limit should be very minimal. The more credit cards you have, the more likely you will be in debt long term.
2. Although you may not think so…you owe too much — Pay off any credit cards balances before you buy the new car, ring, or other major items. Studies have shown that the average college graduate owes $8,200 in unsecured debt — this is in addition to student loans.
3. You can’t afford to live an extravagant lifestyle right away — Sometimes we forget it takes parents years to attain the lifestyle they gave you. Be patient and live at or below your means for the first few years, until you build up to the lifestyle you want for the future.
4. Create a budget as soon as you get a job and put it in writing — If it isn’t written down, it isn’t a budget. Without a budget, the likelihood of having financial problems will increase. It’s never too late to start one!
5. Put a small amount from every paycheck into a savings account — If you wait until you think you can afford to save, you never will. Every dollar adds up in the end and will go a long way. This is a key element to financial freedom, yet very few individuals do anything about it.
6. Invest in your personal development from day one — Never stop learning and improving yourself. Take the job that prepares you for the next job. Sometimes the job that pays the highest salary isn’t always the most beneficial one long term.

“The future sometimes looks scary for graduates,” said Sullivan. “Having extra debt when you graduate can make it look even scarier. We recommend to graduates to pay off as much debt as they can either during or immediately after college. We realize that they will have other expenses after graduation, such as repaying college loans, and they have the rest of their lives to live. They don’t need the extra burden of credit card or other debt hanging over their heads just as they are starting the newest chapter of their lives.”

About Take Charge America
Founded in 1987, Take Charge America, Inc. (TCA) is a non-profit 501(c)(3) charitable organization headquartered in Phoenix, Arizona. TCA is committed to helping consumers gain control of their finances and offers a variety of services including education, budget and financial counseling, and when necessary, debt management.

TCA also serves as an effective resource for the business community. We help financially distressed consumers re-organize their finances and return hundreds of millions of dollars annually to financial institutions, professional service providers, and businesses of all sizes and descriptions that may otherwise have been lost to the economy in bankruptcy. TCA’s diversified programs are utilized by tens of thousands of families and single men and women throughout the United States each year.