Tuition student loans credit card payments and living expenses add up

They all are single, and they all hold down at least one job.
And, like many Americans between the ages of 18 and 24, they are working to keep their heads above water when it comes to finances.
Especially at this time of year, when Christmas bills begin appearing in mailboxes, debt payments can put a big dent in an already-tight monthly budget.
Add payments for easy-to-obtain credit cards to tuition, student loans and living expenses, and many young people find themselves drowning in debt.
In fact, young adults are spending nearly a quarter of their income on debt payments, according to "Generation Broke: The Growth of Debt Among Young Americans," a briefing paper co-written by Tamara Draut and Javier Silva, and published by Demos, a public-policy group in New York.
According to "Generation Broke," 18- to 24-year-olds saw a sharp rise in credit card debt, up 104 percent from 1992 and 2001, to an average of $2,985.
Dean, 19, of Madison Township, attributes that to the credit card industry, which actively pursues young adults.
Dean said he has been offered credit cards many times, but he turns them down.
"It's something to think about in the future, but I'm not into wrapping myself up in things that can potentially hold you down," he said. "It's a risk."
A pay-as-you-go kind of guy, Dean has no interest in acquiring credit cards and the accompanying debt burden. He owes nothing.
"I just buy what I need," he said. "If I can't make it, I don't need it."
Dean completed one semester at Lakeland Community College in Kirtland, and he is taking a semester off to save money. He plans to return to Lakeland to earn an associate's degree, then go on to earn a bachelor's degree at a larger college.
His part-time job at Findak Photography in Madison Village helps make the payments on a tuition payment plan, and keeps his paid-for car on the road. Since he lives with his parents, he has no rent.
Mahle, 24, of Ashtabula, works two jobs - one full-time and one part- to full-time, depending on the week. She also owns her car and expects to graduate from Stratford Career Institute, an online college, in May.
Mahle has two major credit cards.
Has she ever been late on payments?
"Oh yeah," Mahle said. "More than once."
Mahle is not alone.
According to "Generation Broke," one out of five young adults reported they have been late or even missed a loan payment in the past year.
Mahle admitted she's noticed the interest rates on her credit cards have increased since she was late on payments.
"They're getting mad," she said.
While she has no loans now, she expects to once when she moves out West in July to attend college to study alternative medicine.
Her paychecks cover rent, but Mahle owes between $2,000 and $3,000 on her credit cards, which she uses for things such as food, clothing and gas.
Mahle said she's worried about her credit history, but doesn't know what to do to change it.
"I looked at my credit report. I didn't know all that stuff was there. I thought, 'Holy cow.' Yeah, it bothered me," she said.
"I know it's not good to be late on payments," she added. "I'm concerned, but I'm in the process of repairing it. I have a budget, and before I move, it will be a clean slate; no debt."
Tricia Canfield, financial aid director for Lake Erie College in Painesville, said credit cards are one of the hottest topics for financial aid officers.
"On our campus, we are very, very cautious," she said. "We do a lot of (financial) counseling."
All Lake Erie College students are taught about managing finances in a "life skills" class. Exit interviews for graduating students include a discussion of debt and credit, Canfield said.
Canfield said she has never seen a credit card company set up on the Painesville campus. And if she had her way, they wouldn't be allowed on any college campus.
Canfield said LEC students in a four-year program can expect to graduate with $17,000 in student loans, if they borrow the maximum.
"Generation Broke" notes that this is the first generation to shoulder the costs of college primarily through loans, rather than grants.
According to the study, in 1992, 42 percent of students borrowed an average of $9,000 for college. By the end of the decade, almost two-thirds of students had borrowed.
The average college senior graduated with $18,900 in student loans in 2002, taking a big $182 monthly bite out of their paychecks, the study found.
Those who pursued graduate degrees have an average combined student loan debt of $45,900, with payments of $388 per month - 13.5 percent of their income.
Findak, 21, lives in Madison when she's not attending Walsh University in North Canton.
A senior, Findak has about $8,000 in student loans to pay back, beginning six months after she graduates in June.
She works during school breaks at LakeWest Hospital in Willoughby and tutors ninth-grade science students while at school. She lives off campus, and her parents help out by paying her living expenses.
Findak has two credit cards that she uses sparingly: a Visa and a Kaufmann's department store card, which she uses mainly for Christmas presents.
Findak is confident her finances are in good shape, but she has many friends who are mired in credit card debt.
She thinks credit cards are too easy to get.
According to "Generation Broke," 96 percent of college seniors have a credit card.
John McCreight, owner of Consumer Credit Counseling Service of Northeast Ohio in Rock Creek Village, said he, too is very concerned about the proliferation of credit card offers to young adults.
"The youngest person I ever worked with was 21," he said.
The student was in debt to the tune of $20,000, half in student loans and half in credit card debt.
"He was still in college, and his parents brought him in," McCreight said.
"It's just so easy for students to get credit cards."
Even with no jobs and no credit history, credit card companies are extending credit to students because "they have found it to be a very profitable market," McCreight said.
"If it ever goes into default, if the customer is still a student, the companies go after Mom and Dad," he said.
"As long as the (young adult) is a dependent, the parents are responsible."
McCreight said his company works hard to help young adults avoid bankruptcy.
"That follows you for 10 years; in employment, even 20 years," he said.
According to "Generation Broke," nearly 12 out of every 1,000 young adults in 2001 were filing for bankruptcy.
McCreight said he helps his clients establish a budget, and, if need be, he will set up a debt management program for them.
"In many cases, we can get them lower monthly payments and lower interest rates," he said. "Within about five years, if they follow our advice, (their debt) will be all paid off."
McCreight's best advice echoes Josh Dean's philosophy.
"Only spend the cash you can actually see. And don't use credit in any form," McCreight said.