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Show Wednesday, February 21, 2001 THE SIGNPOST Page 3 More than ever, college students are going through school living off credit cards and loans By Camille Hales news writer The Signpost Today's generation of 18 to 35-year-olds has grown up with a culture of debt sprung from a booming economy, easy credit and expensive lifestyles. Students often live paycheck to paycheck and use credit cards and loans to finance meals, new cars and high-tech toys they wouldn't otherwise buy, according to market researchers, debt counselors and consumer advocates."The media and television shows play a part in what students think they need," said Jeff Sanders, junior. "The world got along fine without cell phones before." Purchases students make may be an attempt to live an affluent lifestyle and stay current with spending frenzies, but other spending can't be avoided such as paying for tuition."Students get into debt because they don't have enough cash to do the things that they want to do," said Dwight Day, senior counselor of Consumer Credit Advocates. "Credit cards are a way to fill the gap and I'd say it's done pretty in i ,d!imUilTTT?T- A.S.I. TATTOOS 3040 Washington Blvd. , Ogden... 625-0233 2166 S. Highland Dr. , SLC 484-8700 State Health Department Approved Oldest Established Tattoo Company in SLC. HIGH ENERGY WORK THAT SPEAKS FOR ITSELF Sterile Methods Privacy Brilliant Colors Cover-ups Cosmetics Body Piercing FULL CUSTOM WORK AVAILABLE INSTITUTE DEVOTIONAL Jacob and Amy Alvord nocently. A credit card is the way to make it happen, but nobody plans for it to be a debt." Applying for a credit card can be as innocent as seeing the men with clipboards on campus and wanting a free T-shirt or candy bar. The percentage of undergraduate students with a credit card in their pocket jumped from 67 percent in 1998 to 78 percent last year, according to a study by Nellie Mae, a student loan corporation. "When the bill comes along, students don't pay the whole thing, they pay the minimum monthly payment and that works pretty good, so they'll continue to do it month after month," Day said. "Students find themselves needing to buy books or put a deposit on an apartment and it gradually creeps up to be a big problem."Among all age groups, credit card holders younger than 35 are the least likely to pay their bills in full each month, according to Robert Manning, author of "Credit Card Nation." Meanwhile, the concern about debt leaves little room for saving the green stuff. "Statistics would show that debt is at an all-time record high and continuing to grow and the savings rate is at an all time low," Day said. "There have been news articles in recent years saying that the savings rate is at a negative percent. Instead of 1 or 2 percent of earnings being saved it's at negative 1 percent. The gap is filled with debt and it's a pretty big problem, but not just for students." Jacob and Amy Alvord, presidents of the institute married committee, will be speaking at the Institute Devotional, February 27th. The marnea program involves institute classes, seminars, and activities designed for married and engaged couples each semester Fall and Spring. We welcome all. "Students get into debt because they don't have enough cash to do the things that they want to do. Credit cards are a way to fill the gap and I'd say it's done pretty innocently A credit card is the way to make it happen, but nobody plans for it to be a debt." -Dwight Day, senior counselor of Consumer Credit Advocates People are turning to consumer credit counseling services as a result of not being able to juggle their bills. A problem that could have been solved if the credit card companies that come on campus to promote their cards would educate students about credit. "It is easy to ruin your credit rating in years to come if you are in debt," said Brooke Price, Weber State University loan clerk. "Students should educate themselves about the hardships that can come with loans and credit cards." "A student may think he has $ 1 ,000 he can spend now from credit cards, but they are really just getting that much more in debt," Sanders said. "I think the main reason people get credit cards is for the instant cash and students are the best clients for credit card companies."Credit advisers such as Consumer Credit Advocates help get people into a position where they-can get back in control of their money and how they handle their money. Make your professors proud Use your pleasing personality and terrific telephone manner to conduct outbound sales calls for our Fortune 500 client! CRTPC experience necessary. Convergys offers: Fully paid sales training! Base pay up to $8.25 plus incentives! Medical benefits available! Tuition Reimbursement Program effective your first day of employment! (PT $1,200 1 st yr, $2,000 2nd yr; FT $1,750 1 st yr, $3,500 2nd yr!) If you have excellent verbal communication skills, are able to type 20 wpm and are dependable and professional, you may qualify for this career opportunity. Previous customer servicesales experience a plus! "The fundamental problem when people have debt is they think it's their credit card problem, but the real problem is spending," Day said. "The credit card debt is the fruits of the spending problem and it's there month after month. We help people to develop a realistic spending plan, tools to stay on track and how to use the plan to take away some of their pressures. This helps them recognize where they live within their income so they can go out on Friday night to a movie and dinner." "To avoid debt, it's best to live within your income," Day said. "If you're wanting to do something that you don't have enough money for, then save money for major purchases instead of going into debt. There are also three questions that you should ask yourself before spending money: Do I need it? Do I need it now? Do I have the money to buy it now? If you can answer 'yes' honestly to all three questions, then go ahead with the purchase. If you can't, wait until all three answers are 'yes'. Another big T l V5; 1 V .OJ3L fullIPart-Time On-Line Associates challenge everyone has is discerning between wants and needs." Besides using credit cards. Federal Student Financial Aid can provide assistance for students. It helps to cover school expenses, including tuition and fees, housing, books, supplies and transportation.Most of the aid is need-based. Types of aid include grants, loans and work-study. Grants are financial aid that does not have to be repaid. A loan is borrowed money that must be repaid with interest after the schooling is completed. Work-study provides money for education expenses paid by the school in exchange for on-campus or community-based work. WSU also offersTuition-by-10, a monthly payment plan for tuition. "Loans make it much easier to pay for school so you don't have to work through school," Price said. "But a lot of times, the students have a hard time paying them back." Unlike the baby boom generation who was raised byDepression-era parents,student-aged Americans today aren't fazed by the amount of debt they carry. "There's really no way students can avoid debt with tuition being so expensive." Sanders said. By many measures, young people are falling behind. It's not that students are slackers or deadbeats. as they sometimes have been characterized. Students work hard and often make good incomes, but it's hard to save money when one is head over heels in debt. Find your perfect spot with a great job opportunity with Convergys Corporation, the leading provider of out-sourced billing and customer management solutions! t Our terrific Tuition Reimbursement Program will make it f easier for you readi your goals, and you'll gain a unique h experience in a professional environment you won't J ever find in the fast food arena! Get the best part-time job opportunity around PLUS great benefits and a convenient schedule! Find out how YOU can join our Convergys teaml "Now is the TIME" Talk to a Convergys Recruiter at 629-3555, Ext. XGP-G777 www.convergys.com 10 A.M. TUESDAY February 27, 2000 Convergys |