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This last column of several on credit card use tips for college students
offers
advice on establishing, maintaining and correcting credit history.
In recent years, many credit card companies have lowered the required
monthly
minimum payment amount. It may seem that this makes it easier to keep up
with
your credit card bills, but instead it is a costly way to pay back a debt.
Smaller minimum payments extend the life of a debt and inflate the total
interest payment. In fact, some Consumers making only the minimum payment
will
never pay off the balance they owe because the interest keeps piling up.
Help your college student learn to balance his income and expenses by
suggesting
that he deduct his credit expenditures from his spending plan every time he
buys
something on credit. This prevents surprises at the end of the month because
he
forgot how much he actually spent.
If your student falls behind on payments, there is advice available. He
should
begin by learning how to solve his credit problems. Ask Jeeves, at
www.askjeeves.com, lends advice when asked "How can I get out of debt?"
There also are a number of agencies designed to solve debt problems. The
National Foundation for Consumer Credit (1-800-388-227 and www.nfcc.org)
refers
people to local Consumer Credit Counseling Service offices that offer
in-person,
debt repayment programs and basic money management help either free of
charge or
based on their client's income. The local CCCS of Northern Colorado may be
reached at (970) 229-0695.
Myvesta is an Internet based agency. They employ certified financial
counselors
and staff attorneys to solve difficult problems. They can be accessed at
www.myvesta.org.
Genus Credit Management offers a free debt management program to individuals
who
call 24 hours a day, six days a week and from 9 a.m. to 6 p.m. Eastern time
on
Sundays. Their phone number is 1-800-210-4455.
Make it clear to your child that credit is an asset that is as important as
stocks and gold. Individuals with good credit often can negotiate better
Consumer loan rates for cars, furniture and other major purchases,
especially
when securing a home mortgage. Credit is often checked when individuals
inquire
about renting because poor credit may signal an undesirable tenant to
leasing
agents.
If used wisely, credit - good credit - is a lifelong tool for conveniences
and
emergencies.
For more information, contact your local
Colorado State University Extension office.
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