Members of The University of Memphis community who are facing difficult financial situations will soon have a new place to turn for help.
Starting today, the Financial Information and Resource Center will be available to offer financial advice and debt counseling services to all students, faculty and staff on campus.
Dr. Julie Heath, chair of the economics department, is the director of the center. It is the third year this service has been offered, and she is pleased that The University is doing something to help those in need. Debt is a concern for everyone, not just students, and the center hopes to teach the public to be financially responsible.
"We are going to offer guidance on budgeting, credit cards and debt counseling as well," Heath said. "All of the services will be completely free, and we hope that everyone takes advantage of the program."
Over the last few years more young adults have filed for bankruptcy than have graduated from college, according to Heath.
Student debt is a major concern for The University. Every year The U of M loses students, who fail to return due to financial reasons varying from personal debt to the inability to obtain a loan for school expenses.
Credit card debt also is a major problem facing young adults. Heath is aware of the allure of credit cards, and she says they are the easiest way to build a large debt.
"Everywhere you turn someone is offering these young people credit cards, and they make the mistake of thinking just one won't hurt," she said. "They then get caught up in making the minimum payment, and it takes years to pay off the debt."
According to youngmoney.com, the average undergraduate has $2,700 in credit card debt, and 78 percent of students have at least one credit card.
Angela Vernon, junior criminal justice major, knows the evils of credit cards and agrees it is easy to fall into the trap.
"I got a card and fell behind quickly. Little charges add up over time, and before you know it you're hundreds of dollars in debt," she said.
Heath said many people fail to read the fine print in the credit card agreements, making it easier for the companies to make money by changing interest rates.
The center has counselors available to help those who are considering applying for credit cards and loans, but they also will help form a plan to pay off debt for those who already are in financial trouble.
"We have trained volunteers from the community who are there to help you formulate a plan of action," Heath said.
"If you need more in-depth help we will refer you to the proper place within the community to get you the help you need."
The center is located in Brister Tower room 202 and is open Wednesday from 2 p.m. to 6 p.m. The services are completely free to all faculty, staff and students.
