Surviving credit card temptation in college
Posted on February 18, 2008
Filed Under Advice, Education, Students Credit Cards | Leave a Comment
Debt 101: Jennifer Moreau, a fourth-year student at Louisiana Tech University in Ruston, knows quite a few people who have looked to credit cards or loans to make it through college. And some of her peers have fallen victim to credit card debt.
It’s a miserable situation. And it ruins your credit, which is extremely important in the long-run, especially when you are looking to buy a house or car,” Moreau said.
Generally, college students are strapped for money.
Between astronomical book prices, the pull to attend social gatherings, the desire to buy trendy items and the endless need for the necessity of food, some college students will look anywhere for financial padding.
The banking and credit card industries have long since caught wind of this. Credit card companies set up booths on college campuses, showing incoming freshmen a way to finance their college lifestyles and giving stressed seniors a last resort to scrounge up more cash.
Banks offer student loans to help students pay for college necessities. They make a dollar, or two, as well.
However, there are ways for college students to stay out of debt, even if they use credit cards to help occasionally.
Richard Dancy, owner of the Shreveport collections agency Account Control Bureau, offers advice in the form of moderation and responsibility.
“My advice to any young person that has received a credit card is to only charge what you intend to pay back upon receipt of the bill,” Dancy said. “If you cannot pay it off that month, don’t charge it.
“I recommend using a debit card that accesses your checking account. That way, you can’t overspend; yet you still have the convenience of a credit card.”
Credit cards are a major problem for college students, and loans are not much of a problem until after college, Dancy said.
“Giving credit cards with large credit limits to people who have a very limited income is irresponsible lending,” he said. “Though I feel it is the individual’s responsibility to limit their use of the credit card or any other source of money, I feel the credit card companies are taking advantage of young people’s ignorance of what is involved in the process of borrowing and repaying the loan.”
Moreau said whenever she uses her credit card, which she carries in case of emergencies, she makes sure to arrange to pay it off when the statement arrives.
“I think it’s important to have something to fall back on in case you don’t have cash or you’re in a bad situation.”
But the college student said she also has the support of her parents.
Mindy Riso, a young adult, thinks credit cards are something to be avoided. “They make you think you have more money than you actually have.
Yet Rison still carries credit cards but tries to stay away from using them at clothing stores.
“If you have credit cards limits that add up to more than $5,000, your credit report isn’t going to be very good.”
Money plays a large part in socially surviving in the college world, Moreau added.
“Going out to bars and spending money is a large part of being part of the college social scene. So is shopping and going out to eat. And all of these things cost money and add up quickly.”
But if credit card use or borrowing money lands someone in debt, Dancy suggests contacting the creditor.
“Always, always stay in touch with your creditors. Do not hide from or ignore a debt. It will follow you for at least seven years, long after you are out of college.”
by Lauren R. Sowell
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