Credit cards cause concern
 By
Jeff Cantwell
Staff Writer
On any given morning, one in four students will
wake up and realize they have more than $4,000 in credit card debt,
according to the National Foundation for Credit Counseling.
Credit cards have become a problem on college campuses
across the country, including Purdue.
According to the foundation, 78 percent of students
nationwide have credit cards, and the average student debt is $2,748.
During the summer, Tony Hawkins, dean of students,
took steps to increase the awareness level of the danger of credit cards.
Hawkins sent an advisory letter to all enrolled
students making it clear that credit card misuse and debt are a problem
on this campus.
"It's an attempt to educate students about using
credit cards," said Hawkins.
 The
letter encourages students to use University services to find more information
and assistance about the issue.
Flora Williams, a professor of family economics
and financial counseling, is also concerned about the growing problems
with credit card debt.
Williams said students that live for now without
considering the future find ease and convenience in credit cards and
that is where the problem lies.
"They don't understand the credit process," said
Williams. "They don't understand that loan consolidation costs more
in the long run."
Pressure to maintain comfortable lifestyles is
also a major reason why students use credit cards, according to Williams.
"We spend according to our reference group, the
people we associate with, the people we identify with," she said.
In a recent survey Williams conducted with Purdue
students, results indicate that one-fourth have financial management
problems and debt. Financial or spending problems were reported by 33
percent and impulsive purchases by 47 percent.
Sugato Chakravarty, an associate professor of consumer
sciences, also tries to advise students.
In his personal finance class, he tells his students
to make the full payment on credit cards and to avoid minimum payments.
"We talk about paying it down before anything else,
because the interest rates for credit cards are so high," he said. "It
can seriously jeopardize your future."
Williams notes that control is important when dealing
with credit cards.
"You don't have to spend money to have fun or to
increase your self-worth," said Williams.
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