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Just Charge It
A Little Credit Card Know-How
Credit card debt is a burgeoning problem on college and university campuses and LSCC is no different. LSCC students are experiencing credit card problems.
“I have a credit card and I use it for emergency only. However, I recently noticed that I have been using it for non-emergency situations,” Erica Coulter said. “I have reached my limit and I had to pay an over-the-limit fee.”
“I don’t think that banks should be on campus soliciting their business on campus, due to the fact that a lot of young adults aren’t mature enough to maintain a credit card,” Coulter said.
Sedrick Brinson said, “I have had several credit cards and I feel that as long as I make the minimum monthly payment, I will be ok.”
“I know how important it is for students to develop good credit rating, especially when they graduate and are looking to buy a car or trying to qualify for a home loan,” Brinson said.
“I don’t have a problem with banks soliciting their services on campus,” added Brinson.
“I have a credit card but I don’t use it,” Keisha Banks said. “It’s not free money and you have to pay it back later.”
“I don’t have a problem with banks soliciting their service to colleges because it’s convenient if student is going to school away from home and he or she doesn’t have transportation to get to the local bank to open up an account,” Banks said.
Frankie Johnson said, “I used my credit card to pay for my tuition since I waited too late to complete my FAFSA,” Johnson said.
“I will pay off the balance when I receive my check.”
“One is enough, and you should really try to keep the balance down as low as possible,” Johnson said. “It’s not free money.”
Johnson said, “I don’t have a problem with bank soliciting their service on campus as long as they inform the students the consequences of not paying their bill on time and how it effect their credit rating.”
Although most students handle credit cards with expertise, a significant amount get into debt. Causes include beliefs about future earnings, debt attitudes, and lack of financial knowledge.
Many students have not had financial training and among those who have, classes do not necessarily cause behavioral change. Colleges, parents, and public policy makers must work together to combat the problem of student consumer debt.
In most states, eighteen year-olds are eligible for a card without parental consent or employment.
A recent study has shown that both the number of students owning a credit card as well as the amount of credit card debt held by students has risen in the last couple of years.
If you are going to have a credit card, remember that a credit card is not free. In fact, they’re really high interest loans in disguise. Here’s a breakdown of some typical credit card fees:
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