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A report of the 2009 Sallie Mae, the largest provider of student loans, found students carrying record credit card balances. The average card debt per student has increased by 46 percent since 2004, reaching $ 3173.

Here’s a look at how some students have worked on the acquisition and debt management credit card.

ACQUISITION OF CREDIT CARDS

Alex Bowman received his first credit card in high school after his $ 500 application car loan was rejected for not being sufficiently high. Bowman, Junior Medicine Lodge, wanted to buy a car that his father was a friend of the sale for $ 500, but the bank gave loans only to vehicles that have been at least $ 2,000.

Once you have a credit card to pay for the car, “said Bowman, who quickly reached its limit of $ 1,000 because of interest and late fees. Although it now has only $ 600 of debt credit card – well below the national average for students – have said that if he could do it again, it is expected to obtain a credit card until it is financially.

“If you do not have enough money to pay their bills on time every month and you have to worry about other costs, a credit card is not easy to leave,” said Bowman . ‘This is an easy way for you to dig a big hole.

Jennifer Cook, branch manager of Commerce Bank of Kansas in the European Union, said that students should use credit cards for overdraft protection. Cook said half the students at the University has worked with generally financially responsible and the other half were not.

“It really boggles my mind that out of high school from a checking account, how to maintain a checking account or how to write a check,” said Cook.

Chris Buckland, Topeka student, said he had about $ 3000 debt to a credit card, while a student. He said he received his first credit card in an emergency, but even to its maximum limit of $ 500, so they ordered another card. Buckland said that struck most of its debt when he studied in Germany last year. Now you have three credit cards.

“I do not use my card,” says Buckland. “My first two credit cards, I just had a balance of these I do not use it. I just paid the balance. ”

Spending patterns

Danya Goodman, Bedford, Massachusetts, a graduate student, has two cards: a card gives you 1 percent on purchases in cash and 3 per cent in cash on gas, and another card is used as an emergency in case something happens to another.

Goodman said he used his credit card nearly every time when buying items, because of money, but is used only if it knew that I had enough money.

Shortly after graduating, Goodman car needs repair, but could not afford to pay immediately. She asked for a credit card that has an interest rate of 0 percent and used to pay for repairs, payment of the balance over the next two months.

“You can take advantage of credit cards if you understand how they work,” says Goodman.

The study by Sallie Mae found that 60 percent of the students were surprised at the height of your credit card has reached equilibrium, and 40 percent said they had loaded the items in the knowledge that they had no money to pay the bill. The study also showed that only 17 percent of students said they had regularly paid all the cards each month.

Paige Hendrick, Leawood senior, said he would go to dinner with friends and instead of splitting the bill, which would allow the whole bill on his card and his friends have their payment in cash. Then the bars and spend money rather than using a credit card, which could see their parents online.

“I never give money to my parents. My parents were fed, and finally just said,” We do not do more to cut completely, “said Hendrick.

Hendrick said that the $ 1,000 credit card and he was the most searched for emergencies, but does not trust herself not to abuse it.

Hendrick past experience with credit cards gave him the opportunity to offer advice and to warn students that continue to accumulate debts.

“Stop using your credit card until they can pay,” said Hendrick. “Pay as much as you can and try to get off the debt as quickly as possible.”

HABITS OF PAYMENT

Cook said she could help students of the University to cancel their cards or establish a payment plan with the Bank of Commerce if they are unable to make payments on time.

“Many children want to hide the problem, and this is not what it should do,” said Cook. “You are now at university. You need to address this problem, resolve it and get treatment. ”

William Lewis, a professor of personal finance, says credit card companies forgive reached in May when late fees and annual percentage rate.

“If you were a client of a credit card company and do not usually, and they pay on time, you must give up these things regularly,” said Lewis. “I think people should call and ask — “Hey listen times are tight, things are going down. I want to get this to the APR.

Goodman said that the penalty for all of your debts credit card every month and she felt “lucky” to have always had a job that allowed him to pay for things and the parents who helped when she can not afford something.

Bowman said that some students do not realize that what the balance held at the end of the month is added to principal and interest earned each month until paid. He said he pays less because it was all I could afford.

Bowman had a simple suggestion for students who have huge debts credit card: “Do not buy things you do not need.”

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