Students Fear Credit Bills

Although Boston University and other universities warn college students about the danger of credit cards, undergraduates had an average balance of $2,748 in 2000, according to Nellie Mae, a student load provider.

However, some BU students said the debit card has helped them to control their spending. A debit card works by transferring money out of a checking account when it is used; because there is a set amount of money in the account, spending more than one has is impossible.

“I’ve had my debit card for 6 years, and I prefer it much more than a credit card,” said College of Arts and Sciences junior Shari Abramowitz. “You can’t overspend on it, and it’s easier to manage.

“If ever I didn’t have enough money on the card to pay for something, I would find out before I purchased it,” Abramowitz said. “It makes shopping less dangerous.”

Abramowitz said she is less likely to splurge on things that aren’t essential because she knows exactly how much money she has spent.

“I hear my roommate complain about her credit card bills,” Abramowitz said. “It makes me thankful that I don’t have to worry about spending more than I have.”

This idea is common among many freshmen who have no credit history and little or no income.

Heather Bates, a CAS freshman, and Erica Tozzi, a College of General Studies freshman, both have only a debit card and said it is easier to manage their money that way.

“It’s not very difficult to keep track of the money in a debit card,” Tozzi said. “I use a computer program that balances my accounts when I enter my purchases.”

Tozzi said it is easier to manage her debit card when she keeps receipts.

“One time I was double charged for a purchase, but because I knew how much money I was supposed to have left in my account, I noticed the problem and it was taken care of,” she said.

The use of debit cards has increased 200 percent in the past two years, according to TheTruthAboutCredit.org, but in no way are credit cards becoming obsolete. Nellie Mae reports that 78 percent of college students have and use the cards.

“My credit card has become an integral part of my spending,” said College of Engineering freshman, Brian Bueno. “I use it to pay for things online as well as other places to build my credit. I’m currently $200 in the hole, but I have a job and I’m usually conscientious about my spending in relation to my paycheck.”

Elizabeth Sherman, a College of Communication freshman, said she has learned from her sister’s mistakes and has yet to be in debt.

“I have both a credit card and debit card but I’d much rather use my debit card,” Sherman said. “My sister is in the process of a 15-year plan to pay off an $8,000 debt. She’s had difficulty getting loans and applying for other cards.”