College Students Falling Into Credit Card Debt

Posted on September 4, 2007
Filed Under Advice, Students Credit Cards | Leave a Comment

They come to college with new backpacks, new books, and now new credit cards ready to be used. More and more college students are finding their mail boxes flooded with credit card offers, some students say they even receive as many as five offers every week.

“It’s pretty easy to get a credit card from just about anybody and I think there’s a great deal of temptation to use that,” Chris Chippindale of ENT Credit Union at the University of Colorado at Colorado Springs says.

According to the “JumpStart Coalition,” 45 percent of college students are paying an average of $3,000 in credit card debt.

“You can fall into a trap where you run up a lot of debt and then ultimately have to pay that off with quite a bit of interest maybe a few years down the road.”

Chippindale says ENT Credit Union and U.C.C.S. are trying to help students by offering an alternative to credit cards.  The “Lion 1″ card is basically a debit card, allowing students to deposit an amount of money they choose onto the card.  “That way when they’re making their financial transactions they’re purchasing those with the money that they already have in their checking account.”

Visa is trying to do its part by offering a program meant for kids called “Visa Buxx.”  The program allows parents to pre-pay an amount on the card and then review spending habits with their kids.

Credit cards or not, some U.C.C.S. students say a little advice from their parents and knowing their spending limit can make all the difference.

“Sometimes, it’s tempting, but when you don’t have the money to buy something that means just wait and save until you can afford it,” U.C.C.S. sophomore Justin Avery says.

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