Credit card debt has become a way of life for many Americans. For the last few weeks, the Oregon Student Public Interest Research Group has been collecting data about students who are in credit card debt.
"Students are having to use credit cards for tuition and other expenses. They are not reading the terms, and credit card companies are not disclosing all the terms," said Sayla Eisner-Mix, SOU's OSPIRG organizer. This makes them easy targets for credit card companies.
According to a small sample survey on SOU's campus, 70 percent of students carry at least one credit card, and 48 percent carry a balance from month to month with an average balance of $2,056. Thirty percent have had a card cancelled for non-payment or late payments. Fifty percent have paid a late fee, and 30 percent have paid an over-limit fee. Of the students who have credit cards, 61 percent use their cards to buy textbooks, 43 percent pay tuition with their cards, and 36 percent use their credit cards for emergencies only.
Public Interest Research Group chapters nationwide are collecting their local data in order to give a clearer picture of the credit card problem among college students.
"This is on a higher level than individual responsibility," said Eisner-Mix. She explains that credit card companies use teaser interest rates that do not stay at the opening level, and they change payment dates without enough warning.
"Even responsible people get ripped off," Eisner-Mix said.
Sen. Ron Wyden was scheduled to come to SOU Thursday in order to speak about his sponsorship of a new bill called the "Credit Card Safety Star Act of 2007." This act would allow credit card companies to be rated on five points. The main point of the rating system is to give people an idea of how reliable a certain company is. It will not rate on the basis of interest rates. He was unable to come to the campus because of poor weather conditions at Medford International Airport.
According to the Associated Press at a news conference at Portland State University, Wyden noted that U.S. households had an average of $6,900 in credit card debt at the end of September 2007, an increase of 41 percent from a year earlier.
"These credit card debts are hitting Oregon families like a wrecking ball," Wyden said.
Student Senate Pro-Tem Brian Fox issued a statement about the credit card problem.
"College students are victims of abusive, predatory and deceptive business practices. Students are being taken advantage of because of their tight budgets and lack of financial literacy," Fox said.
In addition, Wyden is also recommending more education on credit card use through television and radio advertisements, as well as a limitation on confusing jargon the credit card companies use.
As OSPIRG continues to collect data, Eisner-Mix offers some sound advice for those involved in credit cards, "The best thing students can do is read the terms, ask questions and be realistic about purchases."
