2008 Woodie Awards
Credit card debt
Financial problems give students grief
Dustin Ward
Issue date: 10/5/06 Section: News
- Page 1 of 1
Debt, loans and bills. Those are problems college students across the country face on a daily basis. Where to get the money to pay for those items proves to be a major ordeal for students.
While some might think there is no way out, there are practical guidelines to staying out of debt.
Lucy Lazarony of bankrate.com says that according to Nellie Mae, the nation's largest provider of student loans, the average undergraduate student is $2,200 in credit card debt.
"High credit card debt also affects a recent grad's ability to pay student loans and to obtain other credit," Lazarony said.
With credit card debt becoming a major problem, college students are left wondering how it happened.
"Students use credit cards to buy things they can't afford to buy cash-wise" said David Hernandez, business administration department chairman. "That's how they get in trouble."
To stay out of credit card jeopardy, dental hygiene major Amy Gibbs said to "not get credit cards, because I definitely think it is easy to get in debt."
But for those students who have credit cards or credit card debt, Lazarony says the experts at VISA USA have provided tips to help manage your credit.
First, one needs to come up with a monthly budget. Students should make sure they know how much income they have a month and how much they have to spend on bills.
The rest can be used for savings or entertainment spending, such as going out to eat or to the movies. Ashley O'Dell, a business administration major, said one can cut entertainment spending "by trying to find more things to do at home."
Second, VISA USA says students should use their credit wisely. That means limiting charges and always paying bills on time and paying them in full as much as possible.
Third, students need to remember not to spend to their limit.
It causes much more debt, and if a student goes over the limit, it could cause additional fees and even cancellation of the account.
VISA USA also suggests that students pay their bills on time every time.
Paying on time not only helps a student stay away from late fees, but it will help a student improve his or her credit rating, which is used if a student ever wants to get another line of credit or loan.
VISA USA also says students should be prepared to pay the minimum payment each month and nothing less.
Another recommendation from VISA USA is that students be sure to notify credit card companies or lending institutions of a change of name, address or job.
That will help ensure that the student is receiving the bill in enough time to pay it and will help eliminate late fees.
Lazarony also says there is a sure-fire way for students to avoid the credit card trap:
"Get one credit card that has a low credit limit and pay it off regularly."
While some might think there is no way out, there are practical guidelines to staying out of debt.
Lucy Lazarony of bankrate.com says that according to Nellie Mae, the nation's largest provider of student loans, the average undergraduate student is $2,200 in credit card debt.
"High credit card debt also affects a recent grad's ability to pay student loans and to obtain other credit," Lazarony said.
With credit card debt becoming a major problem, college students are left wondering how it happened.
"Students use credit cards to buy things they can't afford to buy cash-wise" said David Hernandez, business administration department chairman. "That's how they get in trouble."
To stay out of credit card jeopardy, dental hygiene major Amy Gibbs said to "not get credit cards, because I definitely think it is easy to get in debt."
But for those students who have credit cards or credit card debt, Lazarony says the experts at VISA USA have provided tips to help manage your credit.
First, one needs to come up with a monthly budget. Students should make sure they know how much income they have a month and how much they have to spend on bills.
The rest can be used for savings or entertainment spending, such as going out to eat or to the movies. Ashley O'Dell, a business administration major, said one can cut entertainment spending "by trying to find more things to do at home."
Second, VISA USA says students should use their credit wisely. That means limiting charges and always paying bills on time and paying them in full as much as possible.
Third, students need to remember not to spend to their limit.
It causes much more debt, and if a student goes over the limit, it could cause additional fees and even cancellation of the account.
VISA USA also suggests that students pay their bills on time every time.
Paying on time not only helps a student stay away from late fees, but it will help a student improve his or her credit rating, which is used if a student ever wants to get another line of credit or loan.
VISA USA also says students should be prepared to pay the minimum payment each month and nothing less.
Another recommendation from VISA USA is that students be sure to notify credit card companies or lending institutions of a change of name, address or job.
That will help ensure that the student is receiving the bill in enough time to pay it and will help eliminate late fees.
Lazarony also says there is a sure-fire way for students to avoid the credit card trap:
"Get one credit card that has a low credit limit and pay it off regularly."
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