Credit card law will affect college students
Neil Sickendick
Issue date: 2/24/10 Section: Voices
As you have probably learned through news reports and TV commercials, millions of Americans currently suffer from exorbitant amounts of credit card debt.
Credit cards have become a primary tool for financing everyday expenses such as a trip to the grocery store or paying off the utility bill. If used properly, this tool can be very effective and actually significantly improve ones credit score.
Unfortunately, for many, it can be highly detrimental if not used properly. While we see the commercials and hear the news reports, as college students we may write this problem off as one that is not our own.
Truthfully, however, college students are among some of the most negatively affected users of credit cards. According to a USA Today article in early 2009, college seniors with at least one credit card held a debt of $4,138.
The research, done by Sallie Mae (a college-financing company), found this figure to be a 44% increase over 2004 data, which was the most recent previous survey.
The article goes on to cite the theory that rising tuition costs of 50% over the past ten years could be to blame, as the average student in 2008 charged $2,200 in educational expenses to a credit card.
Clearly, the problem is not as distant from the college student as one may believe.
The concern of credit card debt is not only one of middle-aged individuals struggling to pay the bills and support a family, but one that affects all ages. With credit card debt in America well into the billions, many are left wondering how we can get this problem under control.
The first step, clearly, is to look at the root of the problem. For many credit card users it is hard to decipher the complicated contract they must sign in order to gain access to their credit limits.
Intertwined in the fine print exists vague information regarding annual fees, interest rates, over-the-limit fees, and grace periods. Often times this information can be so hard to find and understand that consumers simply don't acknowledge it and may eventually end up picking up a heftier tab than they bargained for.
Credit cards have become a primary tool for financing everyday expenses such as a trip to the grocery store or paying off the utility bill. If used properly, this tool can be very effective and actually significantly improve ones credit score.
Unfortunately, for many, it can be highly detrimental if not used properly. While we see the commercials and hear the news reports, as college students we may write this problem off as one that is not our own.
Truthfully, however, college students are among some of the most negatively affected users of credit cards. According to a USA Today article in early 2009, college seniors with at least one credit card held a debt of $4,138.
The research, done by Sallie Mae (a college-financing company), found this figure to be a 44% increase over 2004 data, which was the most recent previous survey.
The article goes on to cite the theory that rising tuition costs of 50% over the past ten years could be to blame, as the average student in 2008 charged $2,200 in educational expenses to a credit card.
Clearly, the problem is not as distant from the college student as one may believe.
The concern of credit card debt is not only one of middle-aged individuals struggling to pay the bills and support a family, but one that affects all ages. With credit card debt in America well into the billions, many are left wondering how we can get this problem under control.
The first step, clearly, is to look at the root of the problem. For many credit card users it is hard to decipher the complicated contract they must sign in order to gain access to their credit limits.
Intertwined in the fine print exists vague information regarding annual fees, interest rates, over-the-limit fees, and grace periods. Often times this information can be so hard to find and understand that consumers simply don't acknowledge it and may eventually end up picking up a heftier tab than they bargained for.
Article last update: 2/24/10 at 10:09 AM CST
Viewing Comments 1 - 1 of 1
Jenny
posted 2/24/10 @ 2:03 PM CST
If you're looking for a good credit card to help you establish credit, check out a local credit union. The cards at the one I work at (CU Community) have always had no annual fees, fixed low interest rates, no over-the-limit fees, set due dates and long grace periods. (Continued…)
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