Attorney General's News Release
August 20, 2008
Nixon warns college students to avoid temptation of easy credit when classes resume
Jefferson City, Mo. - Attorney General Jay Nixon is reminding college students and their parents that when they hit the college campus soon, they'll be greeted by a marketing machine offering credit cards,
payday loans
, check cashing and other seemingly easy ways to put cash in their pockets.
Nixon urges students to think twice before accepting t-shirts, food coupons or other giveaways for filling out a credit card application. Once they receive their card, students are likely to see high interest rates on their accounts.
"Students who need a credit card are not going to find the best deals at one of these tables offering free gifts," Nixon said. "Instead, students and their families should aggressively shop for cards with reasonable interest rates and other conditions."
After receiving a credit card, Nixon reminds students to use it wisely.
"When you're low on cash, it may be tempting to use a credit card for things like pizza, entertainment or clothes, but those bills quickly add up and become overwhelming," Nixon said.
With a $3,000 balance at 19 percent annual interest, a $60 monthly payment will take nine years to pay off and cost more than $6,000. Nixon encourages students to prevent pre-approved credit card offers from being mailed to them by opting out at
www.optoutprescreen.com
.
Parents can consult a qualified financial advisor to help them choose bank accounts, credit and debit cards, and other financial resources for their children.
Due to the threat of
identity theft
on college campuses, students need to be cautious with their personal information. Nixon says sensitive documents with bank account, credit card or Social Security numbers need to be kept in a safe location, away from the curious eyes of roommates, friends and other visitors in college housing. Also, Nixon recommends students object if a school uses their Social Security number as a student identification number.
To further protect personal information, college students should keep their computers updated with anti-virus software, spyware detection and a firewall.
The Attorney General offers the
Student Consumer Guide
publication, a resource for teens and young adults, at no charge. This publication can be
ordered online
at ago.mo.gov or by calling Nixon's Consumer Protection Hotline at 1-800-392-8222.
Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).
All media inquiries should be directed to Press Secretary John Fougere.
E-mail Phone: 573-751-8844 Fax: 573-751-5818
