Click to play videoWashington: Twenty-one-year-old Nick Philliou used to work full time as a sales representative at a gym. But last summer, the college sophomore lost his job, and is now not in the best financial shape.
“I have got about $10,500 worth of debt,” Philliou confesses.
Philliou says that debt crept up slowly at first and then snowballed on things like rent, food and gas.
“My cash flow was gone so I didn't want to spend all my savings. So I would put some things on my credit card. If I had to go shopping, I would put it on there,” he says.
Nationwide, college students are using credit cards more and more as a financial crutch, according to student lending giant Sallie Mae.
Its new report says students are carrying record-high balances, an average of $3173 for undergrads and for graduating seniors, an average of more than $4100.
The report also says 60 per cent of students were surprised at how high their balances were and 40 per cent had charged items even though they knew they didn't have the money to pay the bill.
As for Philliou, he blames part of his predicament on the recession. But his debt also included paying for two luxury cars.
He also acknowledges that he hasn't always made the best financial decisions. “I'm partly a victim of the recession. And partly, you know, a victim of 'lavish lifestyles' you could say.”
Now, Philliou is working to turn things around. He has stopped using his two credit cards. He is attending community college to save money and he is working part-time as a personal trainer.
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