Everyone's heard of Visa, MasterCard, Discover, American Express, and Diner's Club. From the first day they step foot on a college campus, students are inudated with these credit card offers. They arrive on campus with spiffy new backpacks and shiny new credit card, determined to make the most of their college years. They leave in debt with thousands of dollars piled on high-interest credit cards.

    These students come to college hearing and believing that credit cards are horrible and should be avoided at all costs. Is this what college students should really be taught? Should students use credit cards or avoid them at all costs? When applying for credit cards there are pages of fine print that if not read and properly understood, the credit card holder can end up in more debt than they ever imagined. The majority of the fine print that is often overlooked is the debt-inducing interest rate. However, when used properly, credit cards build credit and responsibility for college students. It allows the student to build a good credit report that will be needed later in life, and teaches responsibility. The average undergraduate has $2,200 in credit card debt, according to Nellie Mae, the nation's largest maker of stundent loans. That figure jumps to $5,800 for graduate students. Since so many student credit cards have high annual percentage rates, the longer these youngsters wait to pay the card off, the worse it gets. Detweiler points out that by sticking to minimum payments it would take a student more than 12 years and $1,115 in interest to pay off a $1,000 bill on a card with an 18 percent annual rate. If students fall behind in their payments, they get slammed with high late fees. And the debt easily becomes out of hand. (Lazarony 1998)

    As a college student, I personally have two department store credit cards and a debit card. I have had my credit cards since I turned eighteen. My first credit card was a Sears's card and currently has a balance of $32.78, which I just charges on it last weekend. However, it will be paid off as soon as the bill comes in. My next card was a debit card that I got when I opened a checking account at First Union. This is the card I use the most. I use it to buy groceries, gas, food, and anything else I need. All of my money goes into my checking account and then I use my debit card to either get cash or to buy the items I need. I also opened a Richs' card, which I opened only to get the extra fifteen percent off of my purchase. I still use this card anytime I purchase anything there. However, I pay it off immediately while I'm still in the store. This card is only a credit builder. My motto for using either my Sears or Richs card is that if I don't have the cash money, or enough in my checking account, to pay for whatever I put on my card then I can't buy it. This simple motto makes the difference between me going into debt and me building good credit.

       Several studies have examined college students' use of credit at one period in time. Several researchers found that older students scored higher on the affective credit attitude scale than younger students (Hayhoe 2002). The affective credit attitude score measures how a student feels about using credit. A high score indicates that the student enjoyed using credit. The current culture produces young adults who exhibit high credit card usage. Between 70 and 80 percent of all college students have at least one credit card and most have an average of three credit cards ("Credit Cards for College Students Pave Red-Ink Roads").

     However, the number of respondents receiving past due notices in the past year was up slightly. Many respondents had incurred new debts since the first survey data were collected. More respondents had reduced the number of credit cards they carried than had increased the number. However, more respondents had increased the number of credit cards with an outstanding balance. It appears that once out of school, college students' prior experience with misuse of credit may leas to lower affective credit attutude scores. Further longitudinal studies of affective credit attitudes are necessary to confirm this finding. Studies for longer periods of time are essential to examine the long-term effects of taking on additional debt, especially student loan debt and credit card debt, on students' ability to repay their debts and their attitudes toward debt. In addition, studies of other populations are necessary to examine if this relationship can be generalized to other populations besides students (Hayhoe 2002).

    The implication that students' high favorable credit attitudes may cause some to misuse credit provides guidance to educators; they may need to add greater emphasis on the long-term effects of debt. Helping students realize how much the debt actually costs and how long it takes to repay may influence the amount of debt incurred.

    Both policymakers and educators have roles to play in helping students maximize the use of credit. Policymakers need to review credit card companies' practices of soliciting young people. Educators can organize learnign experiences so students become familiar with the assets and liabilites of credit and maximize their decision-making options in selecting and managing debt. Credit is a tool to assist in achieving personal and family goals (Hayhoe 2002).

    College students have grown up in a credit card society and use this type of debt freely. A "community of debtors" creates an environment that reinforces one's beliefs and attitudes. When college students are trying to "fit in" with a group, joining a "community of debtors" can be an outcome (Hayhoe 2002). Examination suggested two distinct processes linking income and debt; one being low imcome combined with the high necessary expenditures and the other being the higher their income, the higher the debt (Hayhoe 2002). They found that students, initially, were not disposed to debt. However, when students found themselves in an environment where going into debt was convenient and easy, their attitudes changed. The Hayhoe (2002) study also identified nine variables (1) affective credit attitude score, (2) age, (3) cognitive credit attitude score, (4) gender, (5) having taken a class in personal finance, (6) borrowing from friends and relatives, (7) retention money attitude, (8) money used as a reward in family of origin, and (9) preparing a list before shopping. These were significant predicators of students having four or more credit cards.

    Students with high affective credit attitude scores are more likely to purchase clothes, electronics, and entertainment on credit. They are more likely to charge travel, gasoline, and auto maintenance, as well as food away from home (Hayhoe 2002). The higher the affective credit attitude scores, the higher the likelihood that students carried outstanding balances on several credit cards. The researchers also found that students with low affective credit attitude scores were more likely to feel guilty after they had made a purchase using a credit card. College students may see credit cards as a means of increasing their purchasing power while on a limited income. It may enable them to participate in activities that their friends are engaged in. It amy allow studnets to feel they belong even though they do not have the money to pay for different things. Companies offer studnet "teaser" interest rates of 5 to 7 percent and quickly ratcher them up, sometimes to as high as 20 percent, or even more for those who miss payments or receive cash advances (Miller).

    According to the Consumer Federation of America, a consumer advocacy group, approzimately 70 percent of four-year college students have one or more credit cards. Of this 70 percent, almost three-fourths have revolving debts of $2,000 or more. Credit-card companies are well aware of the hugh customer base that college campuses provide and are marketing cards to students more aggressively than ever. According to the CFA, studnt debt has tripled since 1990 ("Credit Cards for College Students Pave Red-Ink Roads").

    Some beneficial things can come from having a credit card for use. Good credit is an important asset for students as they begin their professional careers. Without good credit, it can be difficult or impossible to obtain a mortgage, car loan, or other major purchases, and some employers will not hire an individual with scars on his or her credit history. Students can and do use credit cards responsibly by keeping track of their finances and making regular payments. "Most of them are extremely responsible and handle credit cards as well or better than most adults," said Brian Dalphon, a spokesman for MBNA Corp., the largest issuer of student credit cards in the country. "My first card felt like instant freedom in my hand, " said Phil Gerhards, a senior art history major, who "maxed out" his first credit card in a few weeks. Gerhards managed to pay off his card before doing permanent damage to his credit reating, but many thousands of students don't realize their mistakes in time ("Credit Card Companies Catch College Students")

    As a student, the best defense against out-of-control debt and aggressive marketing is always knowledge; learn how to manage you debt and understand the terms of a credit card agreement before digning it ("Credit Cards for College Students Pave Red-Ink Roads").

    College students may find it convenient to charge such things that are helping with their education. Add college financial offices to the list of "everywhere you want to be." One out of every five-college students with a credit card has charged university tuition and fees, says a study out today. "People are growing increasingly accustomed to putting a lot of things on their credit card," says Jamie Merisotis, president of the nonprofit Institute for Higher Education Policy, co-sponser of the phone survey of credit card use among college students (Glassman 1998).

    Put yourself in the position to pay off your debt immediately. The convenience that a person such as a college student gains from a credit card is something that should nevery be taken for granted in these times. Planning as budget to pay off certain debts can make things a little easier month to month. More than half of all students with credit cards pay them off right away, but 18 percent have average balances of more than $1,000, the study says. Those balances could cost an extra $190 at the end of one month, which comounds when the balance carries over.

    Colleges generally do not offer money-management courses or counseling. Like thousands of other college graduates throughout the nation, Jason K. Hackworth left school this spring with a diploma in one hand and a pile of bills in the other. Hackworth, who earned a bachelor's degree in English from Denison University in May, owes a combine $2,500 on credit cards. The 21-year-old Granville resident obtained his first credit card 18 months ago and, like so many others his age, was never taught how to manage it. Before long, he found himself misusing it ("Credit Cards for College Students Pave Red-Ink Roads").

       Counselors all over say credit-card debt is a growing concern and that they ar considering programs to educate students about managing money and using credit cards wisely.
   
    At Dennison College this is certainly evident. David Boyd, a Dennison Economics professor, suggests steering clear of debt altogether. "Don't buy it, or pay with cash," he said. "There is nothing wrong with credit cards. They are convenient and all that, but you should pay off your balance at the end of the month, and pay it all of." Students who become so mired in debt that they file for bankruptcy facce credit doom for 10 years or more. "Companies like TRW track your entire credit history electronically," Boyd said. "Bankruptcy is a black mark against you. It affets your ability to get a car loan, a house mortgage and even a job. If you are lucky enough to get a loan or mortgage, your rates will be much higher than if you have a clean credit history." He said education, beginning with parents but supported by institutions such as clleges, is vital to making a credit card a beneficial tool, rather than a detrimental element of a student's life. 
 
    College studnet are people who need guidance, however much we deny that fact. It's so easy to fall into a hole that we have no intention or drive to climb out of. Parents do play a giant role in the credit card issue as fr as students are concerned overall. Families that are consumed by credit card debt should educate their children about the correct ways to establish credit in early adulthood. "They are like any other retail product," spokeswoman Catherine Pulley said. "If you don't need one or don't want one, you shouldn't get one." Parents should educate their children about using credit in the way they teach them about driving, Pulley said. "This is something that is a joint effort. If you are going to give your child keys to your car, you should make sure they know how to use it. The same goes for a credit card" ("Credit Cards for College Students Pave Red-Ink Roads").

    The average American family has ten credit cards and owes an average of $7,000 to credit card companies, Albrecht said. Michael Wadman, 22, an junior from Layton, Utah, majoring in computer science, owns two credit cards. "I got the cards a year ago to begin establishing credit," Wadman said. "I have flawless credit. My parents and President Hinckley have said that to stay out of debt." Wadman says that students should avoid spending more than they have. "They shouldn't put any more on credit than they have in the bank," Wadman said. "You need to get a credit card, you need to use it for small things, but you need to pay it currently instead of paying interest," Albrecht said. "Everybody should establish good credit, but I would not pay interest on a credit card to do it." : Steve Albrecht, associate dean od the Marriot School of Management at Brigham Young University (Gifford 2002)

    College students become so accustomed to swiping the credit card that they confuse priorities all together. Shopping can be a tool to get what you need. There is  definitely a distinction at this age of what you want, and what you need. Kim Rebel, a certified credit counselor for the Consumer Credit Counseling Service, said using credit cards can be one way to build good credit, but many college students who use them have overextended limits, high balances, and end up falling behind on payments. "I always tell people if you can eat it, wear it, or drink it, it is not an emergency," Rebel said. Rebel said some of the main advantages of credit cards include using them in emergencies, cutting back on the need to carry cash, and most importantly, building up good credit. She said many students who apply for credit cards do so because they want to establish good credit, but there are also other ways to do this. (Barret)

    In the United States money is such a hugely vital thing to our everyday lives. Status is determined by money. To people who have an abundance of money, it can seem like a trivial thing at times. However, to college students who, most likely, are broke most of the time, money is extremely important to life in this country. With money meaning what it does in our society, credit plays a big role. There are several different ways we can climb into debt, whether it is the cable bill or cellular phone payments. Credit cards can be a deciding factor of debt. College students must weigh the pros and cons and decide for themselves whether they are mature enough to deal with the consequesnces of having a credit card. They must also be taught how to read the small print before signing for a credit card and also how to make payments on time and overall proper creditr card usage. The "fine print" can be so deceiving for those of us that do not study finance or something similar. If used correctly, credit cards can build credit and responsiblity for college students.