Report: Most students avoid credit card debt

Only 10 percent of college students max out all their credit cards

With the holiday season concluding, students now are receiving their credit card bills.

They are faced with the decision either to pay the minimum payment, pay part of the whole bill, or pay off the bill in its entirety.

While 90 percent of students do not get into major debt from credit cards, according to the U.S. Payment Card Information Network at www.cardweb.com, 10 percent max out all their cards and find themselves unable to keep up with monthly payments.

"I always pay my credit card off in full," senior Becky Novac said.

She said if she didn't pay the bill off in full, then she would have to pay a lot more every month in interest.

The average college student's debt upon graduation is approximately $3,000, according to the Information Network. "At the end of the first quarter of the year 2002, Americans owed about $660 billion," the Information Network said.

Graduate student Vonzelle Waller said, "I always pay more than the minimum, so I can have it paid off quicker and I don't have too much finance charges.

"I mostly just use it in emergencies," she added.

Sophomore Christene Darcy said she got her first credit card in ninth grade. She currently has three or four major credit cards and about eight to 10 department store cards.

"I got the store cards for the discount," she said. "But, I always pay those off immediately."

She said she pays off all her cards to maintain good credit. "I have better credit than my mom," she said.

According to the Information Network, "The biggest mistake college students make is not making their payments on time. Chronic late payers will develop bad credit over time."

Novak said she knew someone whose car was repossessed after not being able to pay off his debt.

"He would get store credit cards — the ones that say 'six months, no payments' and spend on them like it was free," she said. "He actually said once that he thought it was free."

Waller recommends that students look over their credit card bill before paying the amount.

"Always read your statements," Waller said. "One time, the credit card company charged me twice for the same thing."

Credit cards can be very helpful in emergency situations. Since students rarely have cash, they need to find other means to pay for their purchases.