Student loans. I have been saying for three years now, I believe the next bubble to pop will be student loans. Almost 37 million Americans have a student loan, topping one TRILLION dollars total debt.
Jobs are scarce, unemployment remains high, and if you are one of the lucky ones to actually land a job, it may not pay enough to support yourself and begin repayment of that pesky student loan. The average college graduate has an estimated $28,000 in student loan debt, which is a lot of debt, especially for a twenty something, earning on average $10.00/hr.
No need to worry any longer. This morning I was reading that debit cards are now being offered to students encouraging them to spend, spend, spend!! See, if they obtain this particular debit card, issued by a company called UPromise, they will earn cash rewards that will Help them in paying their student loan.
***sarcasm coming** --WOW!! Isn't that awesome, and oh so nice of a company to care so much for our college graduates.
Here's how it works: if you spend up to $100, you will earn 0.5% cash reward. Spend over $1,000, earn 1%.
So, rack up $1,000 on the UPromise card, earn $10.00 for the month. Are they serious??? $10.00 is hardly going to put a dent in the student loan balance...not to mention, now you owe $1,000 to yet another creditor!!
What about fees? Credit card companies always have fees, hidden or otherwise, they are there, and you have to find them. A fee to use an ATM, a checking account fee, a minimum balance fee, etc.
Spending money to save money is the dumbest sales pitch ever. Wonder how many college educated kids will fall for this trap?