Originally published January 31 2005
Credit card companies are targeting college students and putting them into lifelong debt, say experts
by Mike Adams, the Health Ranger, NaturalNews Editor
Credit card companies are targeting college students in order to create life-long debtors. Because college students are inexperienced with finances, they often max out their cards quickly and put themselves into serious debt. By handing out all sorts of freebies to interest students, the credit card companies are ensuring that students will sign up and pay a lot later.
Get one card with a low limit and use it responsibly before you consider getting another.
Pay your total balance each month.
Keep debt payments below 10 percent of net income.
Having your bills sent to an old address puts you at risk for late or missed payments or identity theft.
Having available but unused credit can count against you when it's time to get a mortgage or car loan.
-Watch for danger signals, such as using one card to pay off another, paying the minimum or making late payments.
Zobel applied for two more cards, transferred her previous balances, and closed all but one account.
Credit counselors say it's a common scenario on college campuses as credit-card companies focus increasingly on younger consumers to expand their market and build loyalty at an early age.
Eighty-three percent of college students have at least one credit card, up from 67 percent in 1998, according to a recent report by Nellie Mae, a nonprofit student loan provider.
Students carried a median balance of $1,770 in 2001 dollars.
Melinda Wright, director of media relations for Momentive Consumer Credit Counseling Service, a not-for-profit organization in Indiana, said credit-card companies target students because of their financial inexperience.
I have no problems acquiring debt to finance other things."
She managed to get out of debt by using money from an overseas travel scholarship to clear her Citibank balance.
Doug Borkowski, a counselor at Iowa State University Financial Counseling Clinic, said most students who get into financial trouble do not turn to their parents for help because of guilt or embarrassment.
The best method to stop the cycle of credit debt, Borkowski said, is to contact the company, close the account and set up a repayment plan.
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