With Spring Break just around the corner, many students are scrambling to find a way to finance a trip out of town. However, with tax dues encroaching on the budget and utility bills still breaking many banks, a much-needed vacation may not seem financially feasible.
Therefore, some students may find those "incredible," "pre-approved" or "no-credit-required" offers arriving in the mail each day from determined credit card companies too enticing to pass up.
Senior photography major Jennifer Jones said she has three credit cards she received via mail offers and now owes over $1,300 to credit companies.
"(Credit card companies) are constantly giving students the idea that they can get what they want without the responsibility of having to pay for it," Jones said.
In an effort to help curb the rising debt of college students, a group of University of Memphis students has organized a free seminar, luncheon and credit counseling session today from 11 a.m. to 2 p.m. in the University Center Ballroom. The event is open to the public, and registration is not required.
Jon Clayton, program director for Memphis Consumer Credit Association, said students are being heavily solicited by credit card companies.
"You need to come (to the seminar) to find out why good credit is important and how to protect yourself," Clayton said.
Clayton said credit card ads regularly fool students by pushing low interest rates.
"Advertisements that are sent out often flaunt low interest rates, but people get in trouble when they fail to read the fine print," he said. "Rates can jump up to 20 to 25 percent if you fail to pay a bill on time."
According to the leading student lender, the Nellie Mae Corporation, 78 percent of college students have at least one credit card while 32 percent hold four or more. After graduation, the average student embarks on a new life with $2,748 in credit card debt looming over them. This figure doesn't include student loan repayments.
Senior Christina Pauline said credit card companies should be more responsible when soliciting to students.
"If they know you already have five credit cards, they shouldn't give you another one," Pauline said.
Today's event will include representatives from the Memphis Consumer Credit Association, the Bank of Bartlett, the Memphis Area Teachers' Credit Union and The University's financial aid office. Each will discuss the issues of student debt and financial responsibility.
An informal counseling session will occur afterward in which students may register for a free credit report and individual counseling.
