Credit Card debt can bring misery - Sitcoms Online Message Boards

Janice · 09-04-2003, 01:35 AM

I think this information can be useful to young people starting out in life.

UNWARY COLLEGE KIDS CAN BE BURIED UNDER CREDIT CARD DEBT

DEAR ABBY: I'm writing to raise awareness about a serious and widespread problem -- student credit card debt. Young adults, who are often "credit card illiterate," are inundated with credit card offers once they set foot on college campuses.
Parents need to understand that their college-bound teens will be able to obtain multiple credit cards even if they have no prior credit history, no employment and no co-signer. Many students then face life-altering consequences because of excessive credit card debt, such as dropping out of school, defaulting on school loans, or graduating with a poor credit rating or looming bankruptcy. Credit card debt can also cause psychological depression and contribute to lower GPAs and increased substance abuse.

It is vital that parents educate their children about responsible credit card use BEFORE they leave for college. Financial literacy should also be taught in high schools so that young adults fully understand the costs of credit and the consequences of irresponsible credit card use. Students who graduate with poor credit ratings are likely to have difficulty renting apartments and receiving competitive-rate loans. They may even have limited employment opportunities.

Thank you for sharing this important information with your readers. -- CAROL A. CAROLAN, Ph.D., CENTER FOR STUDENT CREDIT CARD EDUCATION INC.

DEAR DR. CAROLAN: I hope both parents and students will heed your message. An important lesson learned last year by a college senior bears repeating. Read on:

DEAR ABBY: In my freshman year, I was bombarded with credit card applications promising great rates and free merchandise for signing up. I couldn't resist accepting, but promised myself I would use credit cards only for emergencies.

I am now about to graduate and owe several thousand dollars on my credit cards and have nothing to show for it. If I pay only the minimum each month, it will take me 12 years to pay off what I owe. I wish I had been given the following tips:

(1) Live within your means.

(2) If you cannot pay cash for a meal at a restaurant, do not eat out. Eat at the school cafeteria or make a sandwich.

(3) The new CD or DVD you want will still be around when you can afford it. Listen to the radio or rent a movie.

(4) Rather than going to a club or movie with a group of friends, find inexpensive activities (like playing cards or board games) and spend your evening enjoying them. You'll be amazed at what you can save.

(5) If your college offers a class on managing credit and credit cards -- take it! If you have already resolved never to rely on credit, it will reinforce that intelligent decision.

I hope you deem this letter important enough to print, Abby. Credit card debt is a huge problem for many college students. I should know; I'm one of them. -- COLLEGE SENIOR WHO LEARNED THE HARD WAY

TJL · 09-04-2003, 05:20 AM

Good post Janice.
Credit card debt is one problem that can be avoided.

And sadly enough is not just affecting college students...

¤I Love Clay Aiken¤ · 09-04-2003, 01:22 PM

As much as I want a credit card.. uh uh.. NOT happening. Frankly, I dont want to have to pay up in the end and then some! If I can afford it with cash, then I can buy it.

Janice · 09-04-2003, 01:51 PM

Quote:

Originally posted by ¤MsConanOBrien¤
As much as I want a credit card.. uh uh.. NOT happening. Frankly, I dont want to have to pay up in the end and then some! If I can afford it with cash, then I can buy it.

You're a smart young lady. I made dreadful mistakes with credit cards in my youth. I learned the hard way.
I only use plastic now when I have to....booking a hotel, car etc., ...even then, I use my debit card if I'm able, and it's deducted right out of my checking account.
Credit cards are evil in the wrong hands.

Janice · 09-04-2003, 01:54 PM

Quote:

Originally posted by TJL
And sadly enough is not just affecting college students...

I'm imagining all these credit card receipts from bars....

TJL aka "This round's on me."

¤I Love Clay Aiken¤ · 09-04-2003, 02:02 PM

Quote:

Originally posted by Janice
You're a smart young lady. I made dreadful mistakes with credit cards in my youth. I learned the hard way.
I only use plastic now when I have to....booking a hotel, car etc., ...even then, I use my debit card if I'm able, and it's deducted right out of my checking account.
Credit cards are evil in the wrong hands.

Thank you.

Yah, I used to want one.. but ugh.. why have another unecessary bill? I have a Visa Checking card, so it works just like a Visa, but its my money... if I aint got it.. I cant use it!

Mijada · 09-04-2003, 02:16 PM

That is some great advice. One or the most worthwhile posts I've ever read on these boards.

TJL · 09-04-2003, 04:45 PM

Quote:

Originally posted by Janice
I'm imagining all these credit card receipts from bars....

TJL aka "This round's on me."

I am strictly cash when it comes to my bar tabs.

Lots and lots of cash.

BrandonS · 09-04-2003, 06:31 PM

The real root of this problem seems to me to be that the credit card companies are allowed to charge interest rates many times the inflation rate and engage in usurious practices. Some of them are really just one step above loan sharks. There used to be usury laws to limit credit interest rates and practices, but they were repealed when inflation rate became very high during the Carter administration. For some odd reason, when the inflation rates came down, the usury laws weren't re-instated.

bandito · 09-04-2003, 06:50 PM

Great thread Janice, In my younger years I got into big time credit card problems. As they say with age comes wisdom, to some anyway

but i've learned my lesson, and am soooo responsible with my credit cards now.

laceyinthesky · 09-04-2003, 07:01 PM

I agree.. sadly enough it isn't just affecting college students...

One of my (very) distant cousins made a ridiculous amount of money (around $1,500 a job, several jobs a day) engineering but due to the current economy, he lost his job. He would give his wife $4,000 a month for allowance (yes, that's right, just for allowance. Most people don't even make that in 2 months!), yet she still maxed out every single credit card they had. How anyone could spend 4,000 a month plus some, not even paying bills, is beyond me. Now they owe lots and LOTS of money in credit card debt and no way to pay it.

I'm going to steer clear of credit cards and just stick with the debit.

09-04-2003, 01:35 AM	#1
Janice Retired Admin - Hollywood Swingin' Forum Legend Join Date: Aug 03, 2001 Location: Beantown Posts: 36,388	Credit Card debt can bring misery I think this information can be useful to young people starting out in life. UNWARY COLLEGE KIDS CAN BE BURIED UNDER CREDIT CARD DEBT DEAR ABBY: I'm writing to raise awareness about a serious and widespread problem -- student credit card debt. Young adults, who are often "credit card illiterate," are inundated with credit card offers once they set foot on college campuses. Parents need to understand that their college-bound teens will be able to obtain multiple credit cards even if they have no prior credit history, no employment and no co-signer. Many students then face life-altering consequences because of excessive credit card debt, such as dropping out of school, defaulting on school loans, or graduating with a poor credit rating or looming bankruptcy. Credit card debt can also cause psychological depression and contribute to lower GPAs and increased substance abuse. It is vital that parents educate their children about responsible credit card use BEFORE they leave for college. Financial literacy should also be taught in high schools so that young adults fully understand the costs of credit and the consequences of irresponsible credit card use. Students who graduate with poor credit ratings are likely to have difficulty renting apartments and receiving competitive-rate loans. They may even have limited employment opportunities. Thank you for sharing this important information with your readers. -- CAROL A. CAROLAN, Ph.D., CENTER FOR STUDENT CREDIT CARD EDUCATION INC. DEAR DR. CAROLAN: I hope both parents and students will heed your message. An important lesson learned last year by a college senior bears repeating. Read on: DEAR ABBY: In my freshman year, I was bombarded with credit card applications promising great rates and free merchandise for signing up. I couldn't resist accepting, but promised myself I would use credit cards only for emergencies. I am now about to graduate and owe several thousand dollars on my credit cards and have nothing to show for it. If I pay only the minimum each month, it will take me 12 years to pay off what I owe. I wish I had been given the following tips: (1) Live within your means. (2) If you cannot pay cash for a meal at a restaurant, do not eat out. Eat at the school cafeteria or make a sandwich. (3) The new CD or DVD you want will still be around when you can afford it. Listen to the radio or rent a movie. (4) Rather than going to a club or movie with a group of friends, find inexpensive activities (like playing cards or board games) and spend your evening enjoying them. You'll be amazed at what you can save. (5) If your college offers a class on managing credit and credit cards -- take it! If you have already resolved never to rely on credit, it will reinforce that intelligent decision. I hope you deem this letter important enough to print, Abby. Credit card debt is a huge problem for many college students. I should know; I'm one of them. -- COLLEGE SENIOR WHO LEARNED THE HARD WAY

09-04-2003, 05:20 AM	#2
TJL Suburbanite Extrordinaire Forum Star Join Date: Dec 29, 2001 Location: New Jersey - the cradle of civilization Posts: 16,588	Good post Janice. Credit card debt is one problem that can be avoided. And sadly enough is not just affecting college students...
	__________________ "I think I'll stroll up to the front to see how the shooting's going..." - Capt. Benjamin Franklin "Hawkeye" Pierce Read my blogs! http://centralparkamisguide.com/ http://dvdcriticscorner.com Visit me on Facebook!http://www.facebook.com/profile.php?id=641138880 Hey, I do the tweet thing too! http://twitter.com/TomLevier My shop of handmade items! http://www.etsy.com/shop/ColdGarageCreations

09-04-2003, 01:22 PM	#3
¤I Love Clay Aiken¤ MISS APRIL Forum Addict Join Date: Jul 19, 2001 Location: Parsonsfield ME Shaws - Screwing my way up the employment ladder! Posts: 68,780	As much as I want a credit card.. uh uh.. NOT happening. Frankly, I dont want to have to pay up in the end and then some! If I can afford it with cash, then I can buy it.
	__________________ DAVID COOK FOR AMERICAN IDOL

09-04-2003, 06:50 PM	#10
bandito Going Topless Forum Veteran Join Date: Sep 28, 2002 Location: The Steel City Posts: 6,320	Great thread Janice, In my younger years I got into big time credit card problems. As they say with age comes wisdom, to some anyway but i've learned my lesson, and am soooo responsible with my credit cards now.
	__________________ bandito

09-04-2003, 02:16 PM	#7
Mijada Spencers mom Forum 4000 Club Member Join Date: Dec 02, 2001 Location: eastern US Posts: 4,093	That is some great advice. One or the most worthwhile posts I've ever read on these boards.

09-04-2003, 06:31 PM	#9
BrandonS Member Forum Fanatic Join Date: Aug 18, 2002 Posts: 8,824	The real root of this problem seems to me to be that the credit card companies are allowed to charge interest rates many times the inflation rate and engage in usurious practices. Some of them are really just one step above loan sharks. There used to be usury laws to limit credit interest rates and practices, but they were repealed when inflation rate became very high during the Carter administration. For some odd reason, when the inflation rates came down, the usury laws weren't re-instated.

09-04-2003, 07:01 PM	#11
laceyinthesky Member Senior Member Join Date: Apr 13, 2002 Location: Los Angeles Posts: 1,906	I agree.. sadly enough it isn't just affecting college students... One of my (very) distant cousins made a ridiculous amount of money (around $1,500 a job, several jobs a day) engineering but due to the current economy, he lost his job. He would give his wife $4,000 a month for allowance (yes, that's right, just for allowance. Most people don't even make that in 2 months!), yet she still maxed out every single credit card they had. How anyone could spend 4,000 a month plus some, not even paying bills, is beyond me. Now they owe lots and LOTS of money in credit card debt and no way to pay it. I'm going to steer clear of credit cards and just stick with the debit.