By Jane Han
Staff Reporter
For 23-year-old Jin, it's not so easy to keep cool and confident during rigorous job interviews, especially when she has a six-million-won ($4,800) debt lurking in the back of her mind.
The lion's share of the loan was duly used to cover her undergraduate tuition, but the thought of having such a huge amount of growing debt weighing over her, when she has no income, is unnerving.
``Oftentimes, anxiety gets the best of me,'' said Jin, who is entering her eighth month of job searching. ``Knowing that I'm strapped even before getting started totally zaps out my self confidence.''
The good news for her is that she's still in better shape than her average peers, many of whom are jobless and debt laden.
According to Career, online job placement site, Wednesday, fresh job seekers are bogged down with an average debt totaling 7.08 million won.
A survey it conducted on 1,924 men and women new to the employment market revealed that more than 55 percent said they have money to pay back.
The debt factor isn't helping them through the job hunt, as respondents said they suffer from stress and depression, and lose direction at the thought of their debt piling up.
More men (58 percent) had a financial burden than women (50 percent), according to the survey, and four-year college graduates (58 percent) were saddled with more than high school graduates (57 percent) and two-year college graduates (49 percent).
A majority of respondents said they racked up their debt in pursuit of college education, followed by paying for living expenses, preparation for job interviews, and starting a business or making investments.
``Tuition is going up, the job market is contracting even faster, and moms and dads aren't as financially capable of shouldering the costs for their kids,'' said Chang Kyung-soo, a financial adviser at Hyundai Capital. ``Where else can cash-strapped students turn to?''
He explained that many inexperienced borrowers make mistakes when trying to get hold of quick cash, urging college students and graduates to first consider borrowing from banks before looking into other options, such as credit cards and savings banks.
The survey showed that it takes an average debtor two years and 10 months to pay back his or her loans.
To do so, almost 70 percent of respondents said they were working part-time jobs, while 27 percent relied on their parent's support, 13 percent drew loans from another financial institution and 12 percent borrowed from friends and relatives.
jhan@koreatimes.co.kr
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