THE UNIVERSITY DAILY KANSAN WEDNESDAY, JULY 1, 2009
NEWS
3
FINANCE
Maxed out students
BY JUSTIN HILLEY jhilley@kansan.com
A 2009 report by Sallie Mae, the nation's leading provider of student loans, revealed undergraduates are carrying record-high credit card balances. The average amount of debt carried by undergraduate student cardholders has increased by 46 percent since 2004, reaching $3,173.
Here's a look at how some students have dealt with acquiring and managing credit card debt.
ACQUIRING CREDIT CARDS
Alex Bowman obtained his first credit card in high school after his $500 car loan application was denied for not being high enough. Bowman, Medicine Lodge junior, wanted to buy a car that his friend's father was selling for $500, but the bank only gave vehicle loans that were at least $2,000.
Once he got a credit card to pay for the car, Bowman said, he quickly hit his $1,000 limit because of accrued interest and late fees. Although he now only has $600 of credit card debt — far below the national average for college students — he said if he could do it all over again, he would wait to get a credit card until he was financially secure.
"If you don't make enough money to pay bills on time every month,
and you have to worry about other living expenses, a credit card is not an easy way out," Bowman said. "It is an easy way to dig yourself a bigger hole."
Jennifer Cook, branch manager for Commerce Bank in the Kansas Union. said students should only use credit cards for overdraft protection. Cook said half of University students she worked with were generally financially responsible, and the other half were not.
"It really boggles my mind coming out of high school that they have not even been shown a checking account, how to keep a checking account, or how to write a check," Cook said.
Chris Buckland, Topeka graduate student, said he accumulated about $3,000 in credit card debt while he was an undergraduate student. He said he got his first credit card in case of emergencies, but still maxed out its $500 limit, so he ordered another card. Buckland said he racked up a majority of his debt when he studied in Germany last year. He now has
SEE CREDIT ON PAGE 4
LAWRENCE 4th of July weekend offers bike tour event for all ages
The Tour of Lawrence, a series of three bicycle races sanctioned by USA Cycling, will take place July 3-5 around the city.
Bob Sanner, event director of the Tour, said the races offered a variety of courses for riders of different skill levels, including kids and masters races. Sanner said the event offered entertainment for
non-riders with live music, kids activities, food and a chance to watch the races.
There will be cash prizes awarded to top finishers in each category with a total cash purse for the events totaling more than $20,000.
Online registration ends Thursday at noon, but walk up registrations are welcome with an additional fee. Those planning to bike in junior races, 18 years old or younger, can register for free with
a cycling membership.
"We are trying to get more youth involved in cycling,"Sanner said.
Sanner said that about 200 people had already registered for the event and that he expected 100 more.
For more information or to register online visit www.touroflawrence.com.
Mike Bontrager
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