Students Make Efforts to Avoid Credit Card Debt

By Broadside Correspondent Amanda Cheek

Credit cards give students the opportunity to buy things they might not actually have the money to afford, but tough economic times are making students realize the severity of the debt these pieces of plastic can create.
Students each carry an average of 2.8 credit cards , according to United College Marketing Services in their study done last year.

“I have two credit cards and a debit card and a separate ATM card,” said Kara Bowman, an undeclared freshman. Bowman said she thinks many students probably own credit cards, but admitted to mostly using her debit card.

She said that she pays for one of her credit cards and her parents pay for the other. She said that her parents felt she should get a credit card as a security net, in case of an emergency or when making a big purchase.

“You have to be smart about it; you have to know [how much] money you have,” said Bowman. “I don’t spend a lot.”
Carrying a lighter load, Matt Ebuer owns one piece of plastic—a combination ATM and credit card. Ebuer, a junior business major, has owned his card for about four years.

He estimates that probably half of students own a credit card.
Only 27 percent of students are without credit cards, according to the 2008 study from UCMS. Lucy Wang, a junior double majoring in psychology and art history, does not own a credit card. She thinks students are probably dealing with debt because of credit cards.

“I just have heard from people that they’ve gone into debt because of their spending habits,” said Wang.
The average balance owed on credit cards is $885, according to UCMS. Wang carries one piece of plastic, but it functions as an ATM and debit card and cannot accumulate credit.

Senior biology major Siddhi Joshi said owning a credit card just helps in general. “I don’t use it a lot, [only on] groceries, textbooks [and] gifts,” said Joshi.

One student with more plastic in his wallet is Ron Howard, a sophomore management major. Pocketing four total cards, Howard owns one credit card, one store credit card, a two-in-one debit and ATM card and a student Visa card which is only used for textbook purchases.

“I’m sure everyone handles them the best they can. I feel pretty good about the ones I pay in full, but not the ones that Mommy and Daddy pay for,” said Howard.
Howard said he thinks students that own credit cards and are not responsible with their money will probably go into debt.

“A lot of people will make purchases that they won’t be able to pay back in full,” said Howard. “I know a lot of people that take two or three statements to pay back the initial amount.”

Freshman marketing major Emily Ellisen carries one card that functions as both a debit and credit card. Ellisen said she does not carry cash often and uses her card for most every day purchases.

Ellisen first got her card when she got a more regular job and wanted a place to put her money.
“I think that credit cards will worsen the economy because people aren’t really responsible and won’t have money to pay off their debt,” said Ellisen. “That won’t help the economy.”

Owning a credit and ATM combination card and one store credit card, Daniel Streicher, a sophomore film and video studies major, thinks that many students most likely own credit cards. He said he originally got his card for expenses like gas, and now uses it for everything.

“People treat credit cards differently; some will pay off their balances at the end of every month, and some will take all year and let the interest build. I think that habits really determine if someone will benefit from getting a credit card,” said Streicher.

For more statistics on college students and credit cards, visit www.ucms.com