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Money Management warns students about credit card debt
Center stresses tracking records, paying credit bills
Stephanie Butts
Issue date: 4/24/08 Section: NEWS
Layton Sumpter, student program coordinator for the Student Money Management Center, said student loans were the best type of debt to have because the money was invested in students' futures.
Sumpter placed student loans in a positive light at the Money Management Skills Series on Wednesday.
The class is the last one in a four-part instructional workshop.
"Really, try not to have guilt about this," he said.
Kimberly Goldsmith, a money management mentor for the Student Money Management Center, said she believes the series was a great success and hopes students become excited about being financially independent.
The series was sponsored by the Student to Student Financial Success program started in January, Sumpter said. The program is equipped to mentor students in one-on-one meetings, workshops and skills series, he said.
Hailey Brackens, a Waxahachie freshman, said she heard about the series through e-mail.
"I came for the benefit of the series," she said.
Brackens said she thought the series was beneficial.
"Keep a record of everything," Brackens said.
Sumpter spoke about how credit rates are measured. Students need to know their interest rates on all loans and how much they owe on each one, he said. Ginsberg said interest rates are posted on bills under financial charges.
Both Goldsmith and Sumpter said it was important to pay each bill one time, every time and to pay more than the payment amount.
Sumpter spoke about the danger of consolidating student loans with a significant other. Because student loans are the one debt that is never forgiven, consolidating with a spouse could be dangerous, he said. A student could end up with double the debt if something happens to their partner, Sumpter said.
It is also important for students to live within their means, Sumpter said. Credit cards can be the fastest way to build good credit, but it is important to use good spending habits, he said. Credit card debt is the worst kind of debt and often spending can be triggered by emotion, Sumpter said. Goldsmith said it is important each credit card a student owns has a purpose and to keep track of where the money is coming from.
She said credit card companies talk to each other, so if a student misses a bill it will go on their credit and all interest rates will go up for that student, she said.
"It just tells you about the character of these institutions," Sumpter said. "They're all about making money off the debt we accumulate."
Sumpter placed student loans in a positive light at the Money Management Skills Series on Wednesday.
The class is the last one in a four-part instructional workshop.
"Really, try not to have guilt about this," he said.
Kimberly Goldsmith, a money management mentor for the Student Money Management Center, said she believes the series was a great success and hopes students become excited about being financially independent.
The series was sponsored by the Student to Student Financial Success program started in January, Sumpter said. The program is equipped to mentor students in one-on-one meetings, workshops and skills series, he said.
Hailey Brackens, a Waxahachie freshman, said she heard about the series through e-mail.
"I came for the benefit of the series," she said.
Brackens said she thought the series was beneficial.
"Keep a record of everything," Brackens said.
Sumpter spoke about how credit rates are measured. Students need to know their interest rates on all loans and how much they owe on each one, he said. Ginsberg said interest rates are posted on bills under financial charges.
Both Goldsmith and Sumpter said it was important to pay each bill one time, every time and to pay more than the payment amount.
Sumpter spoke about the danger of consolidating student loans with a significant other. Because student loans are the one debt that is never forgiven, consolidating with a spouse could be dangerous, he said. A student could end up with double the debt if something happens to their partner, Sumpter said.
It is also important for students to live within their means, Sumpter said. Credit cards can be the fastest way to build good credit, but it is important to use good spending habits, he said. Credit card debt is the worst kind of debt and often spending can be triggered by emotion, Sumpter said. Goldsmith said it is important each credit card a student owns has a purpose and to keep track of where the money is coming from.
She said credit card companies talk to each other, so if a student misses a bill it will go on their credit and all interest rates will go up for that student, she said.
"It just tells you about the character of these institutions," Sumpter said. "They're all about making money off the debt we accumulate."
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