Originally published February 7 2005
Credit cards prove problematic for many college students; temptation lures many to unmanageable debts
by Mike Adams, the Health Ranger, NaturalNews Editor
College students attracted to their first credit cards by offers of free t-shirts or cool pictures on their card often find themselves with large, unmanageable debts, consumer experts warn. One recent study by Oklahoma University found that college students routinely get credit cards without ever proving that they have any income. They often rack up thousands of dollars worth of debt and end up quitting school to work full time just to make minimum monthly payments.
College Credit A recent study focuses on credit card usage among Oklahoma college students.
It's a rite of passage for many college students: their first credit card.
By the time college students graduate, one in eight will have charged their way to more than $7,000 of credit card debt, according to the Federal Trade Commission.
David Sterling, management informations systems junior, said he has five credit cards.
"I try to pay the minimum amount and then some every month," Sterling said.
Concern about rising credit card debt among students prompted the Oklahoma State Regents for Higher Education and the Council on Student Affairs to commission a study on the issue.
The Oklahoma Student Credit Card Study, completed in October 2003, is the first state-wide study of its kind, said David Tan, director of the Center for Student Affairs Research at OU, who authored the study.
Booths enticing students to sign up for credit cards with free T-shirts or laundry bags are a common sight at OU.
After filling out a brief application asking for basic information like his name, address and Social Security number, Hanes walked away with a free OU T-shirt.
"They have zero percent interest, and I get a free T-shirt."
The Oklahoma study also found that 79 percent of respondents said their schools should provide more information about the use and misuse of credit cards.
Gill said she receives offers from credit card companies every day in the mail now that she has her degree, even more than when she was an undergraduate.
Bradley Burnett, director of OU Financial Aid Services, said OU is working to better educate students about the pitfalls of credit.
Burnett said he began giving presentations about personal finances to student groups two years ago.
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