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Some students get too much credit Bob Pennell photo Although many college students run up big credit card debts, Charlie Eisenberg says he keeps a careful watch on the balance of his five credit cards. The SOU marketing major transfers balances to get the best interest rates. The numbers on his credit cards in this photo have been deliberately obscured. Most SOU students carry cards; nearly half are in debt By DAVID PRESLER ASHLAND -- The free water bottle may have gotten Misty Speck started. Two months after arriving as a freshman at Southern Oregon University, she applied for her first credit card. "They give you a free water bottle when you sign up," she says. Four years later, the 22-year-old computer science major has five credit cards: a Victoria's Secret card, a Meier and Frank card, a Discover card, a Visa and a Mastercard. And about $8,000 in credit-card debt. She used her credit cards to buy a laptop computer, but most of her purchases were "just junk." Now she's stopped using the cards and says she's learned her lesson. "If they gave them to me now, it would be different," she says. Credit card use and abuse is common at SOU and other campuses nationwide. Three out of four SOU students hold a credit card, according to a new survey by SOU business students. Among card holders, almost two-thirds carry a monthly balance. The pitches come by mail, by phone, at stores and on campus. Simply by being a student, you are -- as one put it -- "pre-approved to (screw) up your credit." Though some have banned on-campus credit-card pitches, many colleges, including SOU, play an indirect role in the trend by making their campuses and records available to marketers. In SOU's bookstore, every checkout bag comes with a credit card application and other solicitations tucked inside. Each credit card company can set up shop two days a year, giving away T-shirts, candy and other items to lure students. Marketers can even get a student list with names, phone numbers, addresses and majors. SOU's credit card usage rates appear to be higher than the national average. A 1998 Nellie Mae study found that 60 percent of undergraduates have a credit card. The average balance was $1,843 -- and 5 percent had balances of more than $7,000. The SOU survey didn't include balance information. But Chris Fazzio, one of the student researchers, believes credit-card debt levels are rising with the availability of credit. "The intensity of the problem is getting worse," he says. "It's a big problem," agrees Jan Safley of Consumer Credit Counseling Service, a nonprofit service that helps people climb out of debt. "We are seeing more and more young people in our office." And students are often overly optimistic about paying off debt. "When college students are acquiring this debt, they are assuming that as soon as they get out of school they will have the resources to pay it off," she says. That's Charlie Eisenberg's plan. He has five credit cards, owes $7,000 and plans to purchase a new motorcycle, partly on credit. "I'm pretty confident about my career," says Eisenberg, a 22-year-old marketing major. "I'm young, having a good time and not too worried about it." Unlike some students, he's keenly aware of interest rates and plays the transfer game, shifting his debt to take advantage of low-interest offers. Pamela Weatherspoon, a 19-year-old freshman, got her first card last summer and maxed it out on gas and clothes. She now owes about $1,000 on four cards. "You really don't see how it's going to get you into debt," she says. With money tight, some students simply pay the minimum required, allowing balances to build. The survey showed that most don't miss payments, but some are learning what happens when you do. "They call every other weekend," says Michael Robinson, a 21-year-old with a $600 balance. Calls to three credit-card companies that have visited SOU this year were not returned. The SOU study concluded that the reason companies target students is to build loyalty. People tend to keep cards for years, giving companies time to collect interest and fees. The free-spending ways of many young consumers -- and the benevolence of their parents -- are another draw. Safley says parents who don't want their children to get a bad credit rating are often willing to pay off balances. Whatever the reason, the pitches can be hard to miss. SOU's bookstore passes out about 25,000 bags a school year, each with a credit card application. The companies -- and other vendors -- can set up booths on campus two days a year; about a half-dozen companies have this year. And though no credit card companies is believed to have purchased the student lists, they are available. SOU has little choice about releasing the lists, says registrar Mike Corcoran. The state attorney general's office ruled that the lists are public records. The school charges $65 per list to cover costs. Three or four requests are made a year, most from military recruiters. While many students say they get credit-card pitches in the mail, Corcoran says mailing lists abound these days. And, as most consumers know, once you're on one, you're on plenty. SOU officials admit they aren't comfortable with the system and agree more education about the dangers of debt is needed. Many have tried to make consumer education more available. Lara Mann, the bookstore's director, says she "abhors" the stuffed bags. But the bags cost 4 cents with the solicitations, 11 cents without them -- so the bookstore saves roughly $1,750 a year by allowing them. But she'd support a campuswide ban. "I would applaud that and pay the difference," she said. Carol Gies, director of student activities, tracks vendors that set up the booths. The $100 fee goes mainly to student clubs, and she isn't sure a ban is the way to go. "(Students) should be able to chose for themselves," she says. "They are adults." Today's Edition : News | Sports | Business | Weather | Tempo | Classifieds Mail Tribune Copyright � The Mail Tribune 2000, Medford, Oregon USA