How to get credit card counseling for college students
Credit Cards: Students Beware
Charge!
That’s not a battle cry, but the sound of millions of college students who are getting and using credit cards with abandon and sometimes not being able to deal with the damage it can cause to their credit worthiness and finances.
Credit card use among college students has grown significantly. Some students don’t realize it when they go overboard in their credit card use and end up deep in debt, paying large interest rates on their balances, and finding it difficult to get out from under the burden.
One study, at Louisiana State University, found that more than 70 percent of students surveyed had at least one credit card. Seventy-five percent used the cards on a regular (daily, weekly or monthly) basis. More than half of the students said they paid their credit card bills each month and almost half said they had balances of less than $100. However, more than half said they did not pay their balances in full and 14 percent had only paid the minimum monthly payment. More than 20 percent had more than $1,000 in credit card debt and another 20 percent had “maxed out” their card.
There are several steps students can take if the think they are getting into trouble with their credit card debt.
One of the first steps, most experts agree, is self-discipline stop using your credit card for anything more than the most essential purposes. Next, consider contacting a debt counseling service such as Consumer Credit Counseling Services (http://www.cccsatl.org), a non-profit agency.
There are a number of other agencies and non-profit organizations that can help students find their way through credit card difficulties. Among these are:
The Consumer Federation of America.
A recently established organization, the Center for Student Credit Card Education (www.cscce.com) has a wealth of information and should be first stop for students, and their parents, to learn about credit cards. It also has useful links to other credit card-related sites.
Truth About Credit a website by the U.S. PIRG Education Fund and the Student PIRGs (Public Interest Research Groups) at www.truthaboutcredit.org.
Another source of assistance is your school, college or university student affairs, counseling or financial aid offices. Their counselors can be the first line of defense in helping students deal with their credit card problems.
The Federal Trade Commission can also provide worthwhile information and tips about credit cards. For example, the FTC suggests students resist “free” gifts as a reason to sign up for a credit card because many card issuers charge an annual fee of $15 to $55 making the so-called free gift worthless. The FTC warns students to carefully examine the credit card agreement. Many cards offer low “teaser” interest rates to get students to sign up, but the rates can go up very quickly after an initial sign-up period.
Other suggestions experts offer are:
Limit yourself to one credit card
Pay your bills on time
Pay your credit card balance in full each month
Never use one credit card to pay off another card
Don’t exceed your credit limit
Avoid cash advances
Don’t use a credit card to pay tuition
Don’t skip payments (even if your bank or credit card company say you can).