Spring Break
EDITORIAL: New bill helps students avoid credit card debt
Editorial Board
Issue date: 8/25/09 Section: Commentary
In the past, along with registering for courses and learning how to use NetIDs, it probably wasn't unusual to apply for a credit card during orientation. But on July 8, Governor M. Jodi Rell signed a bill that regulates credit card marketing on college campuses. The bill also restricts debt collection actions used by credit card companies against parents.
With freshmen year of college comes freedom. Your parents aren't there to make you go to class, no one is going to make you eat vegetables with your dinner, and you'll likely be monitoring your personal finances yourself. With credit card offers in your mailbox every other day, it is difficult to ignore the temptation of signing up for one. At orientation, it is even easier for credit card representatives to corner you - as you are suddenly face-to-face with them, they can convince you that you will need that credit card for "emergencies." What those credit card representatives won't tell you is that once you swipe that card, it's hard to stop. Especially when you begin to justify those "emergencies" as midnight orders from Wings Over Storrs.
The average undergraduate student loan debt at public four-year institutions is roughly $11,000. We are already burdened with financial obligations from other sources. By not having credit card companies on campus to lure students into applying for cards that they don't really need, it alleviates financial pressure.
Students need to understand that credit cards can become too convenient to use and can bear unforeseen consequences. Not only does charging too much make it easy to sink into debt, but not paying on time can also hurt your credit score for when it really matters (for example, when you want to buy a new car after graduation). Companies may try to reel you in with promises of cash rebates and free gifts, but these benefits can expire before you even get the opportunity to use them.
The new law also requires companies to provide credit card management materials with credit card information, which will benefit college students as well. But for those who plan to steer clear of credit cards, one of the best methods of keeping tabs on where your money is going is simply by budgeting. By making a list of all your weekly expenses and not overspending, you may save more than you think you will.
College life is great, but it's also expensive. Don't allow yourself to fall into the trap of credit card debt. It can be easy to fall into, but much harder to get out. Educate yourself on your financial options, and be sure to think hard before you reach for the plastic.
With freshmen year of college comes freedom. Your parents aren't there to make you go to class, no one is going to make you eat vegetables with your dinner, and you'll likely be monitoring your personal finances yourself. With credit card offers in your mailbox every other day, it is difficult to ignore the temptation of signing up for one. At orientation, it is even easier for credit card representatives to corner you - as you are suddenly face-to-face with them, they can convince you that you will need that credit card for "emergencies." What those credit card representatives won't tell you is that once you swipe that card, it's hard to stop. Especially when you begin to justify those "emergencies" as midnight orders from Wings Over Storrs.
The average undergraduate student loan debt at public four-year institutions is roughly $11,000. We are already burdened with financial obligations from other sources. By not having credit card companies on campus to lure students into applying for cards that they don't really need, it alleviates financial pressure.
Students need to understand that credit cards can become too convenient to use and can bear unforeseen consequences. Not only does charging too much make it easy to sink into debt, but not paying on time can also hurt your credit score for when it really matters (for example, when you want to buy a new car after graduation). Companies may try to reel you in with promises of cash rebates and free gifts, but these benefits can expire before you even get the opportunity to use them.
The new law also requires companies to provide credit card management materials with credit card information, which will benefit college students as well. But for those who plan to steer clear of credit cards, one of the best methods of keeping tabs on where your money is going is simply by budgeting. By making a list of all your weekly expenses and not overspending, you may save more than you think you will.
College life is great, but it's also expensive. Don't allow yourself to fall into the trap of credit card debt. It can be easy to fall into, but much harder to get out. Educate yourself on your financial options, and be sure to think hard before you reach for the plastic.
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