College debt can hurt some, help others 

In 2002 the average household carried a credit card debt of more than $8000. Along with this statistic, 80% of college students own credit cards. Debt among both families and students is becoming a more common problem every year. In 2003 bankruptcy filings hit an all time high of 1.65 million Americans and it’s expected to rise.

A new group at the University of South Carolina called Palmetto Solutions has stepped in to help make sure future generations don’t fall into credit trouble. This student run group holds seminars around the U.S.C. campus to teach freshman how to manage their money and what to watch out for when using a credit card. Account executive of Palmetto Solutions, Sheryl Hudgins, hopes this program will help inform students before they get into credit trouble.

"We want what we want and we want it right now. So credit is an easy way have this thing. And you don't really stop and think, so we're hoping that this program will do, if nothing else, it will make them think before they go buy that CD or that blouse."  

Students who attended one of the meetings said that many times the things they are spending their money on are unnecessary items such as designer purses, shoes, and jewelry. Amber Wasalewski, a senior, even reported having a credit card debt of $3000. 13% of college students hold a credit debt of this amount.

“ I don’t know what happened. When I got my first credit card I was so excited I must have just gotten carried away.”

Although credit debt is an issue, it also has a bright side.
College students account for 18% of the nations spending on entertainment. And that’s not the only benefit. According to the Back-to-College Consumer Intentions and Actions Survey, the average consumer buying back-to-college merchandise will spend $665, pumping $25.8 billion into the economy.

Palmetto Solutions is trying to go national with their program and hopes to help as many students as possible stay out of credit card debt.

Reported by:

Kelly Sega

Kelly is originally from Oxford, Connecticut, but has spent her last four years at the University of South Carolina studying broadcast journalism. She has interned at ESPN, but has a true love for news. If she doesn't pursue a career in broadcast however, she would love to do something in the entertainment industry. Kelly’s hobbies include going to the beach and watching movies. She is the daughter of Linda Campagna and Gary Sega.