Students, both undergraduate and graduate, are becoming very familiar with credit cards. Students tend to use credit cards because of their convenience. The impact of easy credit card availability and indebtedness accumulated by students is raising many concerns. A Nellie Mae survey of undergrads in 2000 reveals some disturbing numbers.

•78 percent of college undergraduates have at least one credit card.

• Average number of credit cards per student is three.

• Average credit card debt per student is $2,748.

• 13 percent have credit card debt between $3,000 and $7,000.

• Nine percent have more than $7,000 in credit card debt.

Using small increments of available credit responsibly is a great way to learn about the pros and cons associated with borrowing, and to establish a positive credit history. Unfortunately, without being educated on the possible pitfalls associated with too much debt, some students may be learning lessons the hard way.

The undergraduates in the 2000 Nellie Mae analysis carried an average credit card balance of $2,748. A student using a card with an 18% APR and who makes only a minimum monthly payment of $75 will be paying off that credit card balance of $2,748 over 15 years, paying as much interest on the loan as he originally borrowed.

Do you really need a credit card?

The Pros: A credit card can….

• Tide you over while you wait for cash from other sources.

• Be a lifesaver in emergencies.

• Serve as an ID, even if you don't use it for charging things.

• Help you build a good credit rating - if you make your payments on time.

The Cons: It can also…

• Make shopping a little too easy. Large balances can build up quickly.

• Spell financial disaster if you get behind in your payments.

Tips for Good Credit

• Carry only one card.

• Read the fine print.

• Beware of cash advances - most will carry a fee.

• Check out annual percentage rates.

• Get a card with a low credit limit. This will help you control your spending.

Are you heading for financial disaster? Universities are starting to see students drop out of college because of high credit card debt. To prevent debt levels from becoming burdensome for students, which could result in student loan defaults as well as general poor financial health, the Financial Aid Office at NSU, Education Assistance Corporation, Consumer Credit Counseling Services, and American Center for Credit Education are working together to provide services for students who feel they are drowning in debt. Students have the opportunity to obtain the services of trained credit counselors to assist in budgeting and managing financial issues. Student can receive a detailed action plan outlining a program of money management and steps to follow in order to accomplish educational and financial goals. If you feel that you are in need of these services, please stop by the Financial Aid Office for more information.