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UNIVERSITY y March 1,2000 • the Seahawk f Credit card companies target college students, leaving them in debt by ANNA C. BROOME Staff Writer Credit card companies target college students so often that many state legis latures are proposing laws to hinder credit card possession by financially de pendent persons under the ag? of 21. Many college students fall into the habit of acquiring too many cards and cannot keep up with the payments. Howard Dvorkin, president of Con solidated Credit Counseling Services, advises students to be weary of apply ing for a variety of credit cards and making purchases on these cards that they cannot pay for in full at the end of the month. “Astonishingly, one in five college students accumulates a credit card debt of roughly $10,000,” Dvorkin said. Dvorkin said credit card companies target college students because of two factors. First, freshmen and sophomores are away from home for the first time. Many are not educated in the ways of finance. Secondly, their parents are likely to pay off debts the student accu mulates. “I’ve sat down with various members of credit card marketing groups from some of the largest banks in the coun try and posed the question, ‘How can you offer credit cards to students that do not have a job and therefore no means to pay back the debt.’ Their response was quit simple, for the money,” Dvorkin said. “The balances they al low the student is quite a bit lower than their normal balances. And, if the stu dent can’t pay the bill, chances are mommy and daddy will jump in to help him out.” UNCW students say they are con stantly confronted with credit card pro paganda. “I receive so many applications from credit card companies it is overwhelm ing. I applied for a Discover Card over the phone because I wanted them to stop calling me,” said senior Jonathon Garris. “I still hear from MasterCard, Visa and Citibank almost everyday, yet I do not have any credit. I wondered why they wanted me as a customer. Now, I just hang up on them.” Sophomore Elizabeth Hullender said, “I have three credit cards. They would send me stuff in the mail all the time. They read, ‘ No co-signer needed’ and ‘ Must apply by Mar 1, 2000.’ It was like they wanted me to keep it secret from my parents.” According to a study by abc.com, ten states have either proposed or enacted legislation that would limit access col lege students have to credit cards. On February 11, 1999, Tennessee proposed legislation that would prohibit colleges from giving student data to credit card firms, prohibit the firms from recruiting potential student card hold ers on campus or through campus events, and prohibit the firms from giv ing away incentives to entice students into applying for credit. Washington state has proposed two bills which were sent to the Senate Rules Committee early this month. Along with limiting credit card solici tation on college campuses, these mea sures would prohibit those under 21 from obtaining a credit card without ei ther parental permission or proof of fi nancial dependence. UNCW has its own policy prohibit ing credit card solicitation on campus. Section IV-6 of the Student Handbook and Code of Student Life reads, “No so licitation shall be conducted in any building or structure on the campus of the University of North Carolina at Wilmington...except by the agents and or employees ofjhe university acting in the official capacity of their agency or employment or by the student gov ernment and/or registered student orga nizations, in accordance with this sec tion on the university policy.” Dvorkin said there are several basic rules students should follow in order to remain debt free and establish good credit. “Before applying for a credit card, read all the fine print,” Dvorkin said, emphasizing that students should find out the interest rates associated with the payment plans. He also said students should avoid running balances by paying what they owe each month in full. “The trap is minimum payments are designed to keep you in debt. They are not designed to help you. When doing a minimum payment, about 75 percent of that payment is going to pay inter est,” said Dvorkin. Students who are interested in learn ing more about maintaining good credit and/or getting out of debt can go infor mation from the Consolidated Credit Counseling Services web site at www.debtfree.org. Dinner Music for the Spiritually Hungiy |H!AV!N SCENT... The New Edge of Worship Come Hear the Band,,, Malthus’ This service is for you.„Sunday 7; 15pm Music driven,„High Energy Sleep in Sunday morning and |oin us Sunday night! Heaven Scent is now held on the 1 st and 3rd nthw whkMd oDDOrtunfe llaflvlfedv: Mays Saturday 6pm 10 am:The AogsburgConfession Sunday 8:30 & 11 am 7pm: 10 Key People of the Bible 2/17 7 00pm Free Fellowship Meal will be held trom o-/pm. All Are WELCOME! ^ ^ . 2/13 5 00pm Spaghetti Dinner / 5:45pm Sweetheart Game Show St Matthew’s Lutheran Chorch Across from UNCW 612 S. College tel. 791 -4582 HEAVfM m/, The Association for Campus Entertainment proudly presents: 1 Filmaker, Director, and Writer of movies such as: •rzu’- Campiig Thursday, MARCH 30,2000 K Thalian Hall 8:00 pm TICKETS AVAILABLE NOW! $10 for students, faculty, and staff Feb.28-March 3: available at INFORMATION DESK After March 3: available at THALIAN HALL Questions: call 962-3842' ‘ ACE is a funded service of SGA
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