Mickelle Bisbee – Staff Writer
University of Central Oklahoma, freshman Mitzi Pool took her own life as a result of her outstanding credit card debt in 1997, the bills of her credit card spread out on her bed as her suicide note.
“That’s the extreme, but [credit card debt] can cause immense amounts of stress,” said Tommy Raulston, assistant lecturer of Accounting, as he recalled the old story. “I’m afraid it can make students temporarily think that they’re wealthier than they are and that can lead to some rough stuff.”
Stories like these, even though traumatic, are still a reality. Students have a lot to pay for when it comes to school that loans and scholarships cannot always cover: books, supplies, bills, food and more. Credit cards can be an easy way to pay for these things, however, it can also be a slippery slope to get into debt.
“I view credit cards kind of like prescription medication,” said Raulston. “It’s very helpful when needed in small doses, but it’s easy to abuse.”
While Eric N. Johnson, a Clara R. Toppan professor in Accounting, agreed with Raulston that credit cards can be easily abused, he said that if a student is mature enough to handle one, it can be beneficial.
“They’re the future,” Johnson said. “We’re going cashless rapidly as a society and so the ability to carry and use credit or debit…is the way to do business. Certainly online, it’s the only way to do business. So, having one is not a luxury anymore, I would say it is almost a necessity.”
Each day, online shopping is growing larger and using cash, except to order a pizza, is almost impossible. Johnson advised that if students did want to go cashless, especially for online browsing, the best starting point is to use a debit card.
Like credit cards, debit cards are a small piece of plastic to use instead of cash, however the card is the cardholder’s own money instead of money borrowed from an outside source. Johnson said this is a good first step because it teaches students to use money on a card but not to use more money than they have.
With most things, there is a positive side and a negative side, and the same goes with credit cards. While credit cards can lead to extreme debt if not used responsibly, they can become a learning experience for students in building a good credit score, said Johnson.
Raulston and Johnson both remember a time when credit card companies would advertise to students on campus, signing students up left and right, handing out t-shirts. Nowadays, the advertisements have become more digital through emails and social media.
In the effort to protect students from mindlessly signing up for credit cards, former president Barrack Obama established the Credit CARD Act in 2009 which prevented credit card companies signing up young consumers for credit cards if they were not at least 21 years old, or unless they met all the terms the company held for getting credit cards.
Whether students choose to get a credit card or not, understanding how to use one and when to use one may be an important step to staying out of debt and being responsible.
“To me, the most important ‘do not do’ thing with a credit card is to use it as a debit card,” Johnson said.
