AS I SEE IT: Young adults can get help in dealing with credit

“Teens are charging ahead into debt,” trumpets a headline in The Kansas City Star. “College Freshmen Flunk Money Management,” reads another.

A college student incurs $37,000 in credit card debts after signing up for a “free” credit card — in exchange for a large candy bar.

Credit card debt in the U.S. has risen 31 percent in the last five years, with teenagers and college students leading the charge. It’s estimated that 33 percent of high school seniors have credit cards. Unfortunately, many teens and young adults abuse their credit cards.  People under the age of 25 are now the fastest-growing group of bankruptcy filers. College students reported having an average credit card debt of $2,169.

Two years ago, Kansas City area lawyers and bankruptcy judges started the Credit Abuse Resistance Education program, or CARE, to help high school students avoid the pitfalls of credit card misuse. They have presented classes to more than 1,200 high school students in area schools.

“Every day we see and hear stories of young people … who, because of their naive abuse of consumer credit and its negative effect on their credit scores, are losing out on jobs, apartments, student loans, admission to graduate school and car loans, in addition to suffering many other consequences they can ill afford at that critical time in their lives,” said New York Bankruptcy Judge John Ninfo II.

An Indiana University administrator recently stated that the university loses more students to credit card debt than to academic failure.  One writer has estimated that between 7 percent and 10 percent of college students will drop out of school because of consumer debt problems.

In the CARE program, local lawyers and judges present programs to high school juniors and seniors, providing information about using credit cards and avoiding problems with credit card debt. 

Students are encouraged to limit themselves to one credit card with a low credit limit, and to use credit cards for necessities, not “wants.”

Students are also provided information on the costs of financing larger purchases, such as cars and electronics, and the traps to avoid in making larger purchases. 

The program meets educational guidelines for Kansas and Missouri schools. High school teachers who wish to schedule a class presentation or learn more about the program should contact Carole Bozworth at the University of Missouri Extension Service at (816) 482-5862.