Release date: June 23, 2003
Contact: Elaine Justice, Associate Director, University Media Relations,
at 404-727-0643 or ejustic@emory.edu

Even for Teens, It’s Never Too Early to Cut Up Credit Cards

Too many teens have credit cards, which only adds to their problems when the time comes to start paying for college, says Maria Carthon, assistant director of financial aid at Emory University. With college expenses rising, Carthon says it’s more important than ever for students and their parents to enter college with as little debt as possible.

"Teens with credit cards need to get rid of them, close them out, even use their summer job money to pay them off," says Carthon. But what about keeping one credit card for emergencies or something you really need? Unfortunately, many teens have trouble distinguishing between wants and needs, says Carthon. Parents and teens who want the buying power and ease of a credit card without the debt hassles should consider a debit or check card instead, she says. "That way, you only spend money you already have."

Carthon also advises young people with a credit history to get a copy of their credit report before entering college. Even at a young age, knowing your credit rating—and correcting any negative items or outright mistakes on your credit report—can make a difference in determining how much you can borrow and at what interest rate.

For college freshmen, "coming to school means a transition from parents making all the financial decisions to having to make decisions on their own. We want to make sure students know what to do." That’s why Emory is initiating a peer counseling program this fall in which Emory students will be trained to counsel their peers about evaluating their spending and setting financial goals. "It’s one more way we’re trying to take bigger steps toward educating students on campus," Carthon says.

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