CREDIT CARDS TROUBLE FOR SOME STUDENTS

Tracy Price knows credit cards can buy a lot of financial trouble.

"It's like a never-ending battle," said Price, a Southeast Missouri State University student from St. Louis.

Price is just one of a number of Southeast students who find themselves saddled with substantial credit-card debt.

Price has three credit cards: a major credit card and two department store cards. One is almost paid off. She owes about $1,200 to $1,500 on the other two.

A junior at Southeast, Price expects to graduate in 1996 -- six years after she first enrolled in college.

Price said the length of time it's taking her to get a college education is at least partly due to her past spending habits.

Price said she bought a car in summer 1992. That purchase, coupled with her credit-card debt, forced her to work instead of going to school. She stayed out of school in fall 1992 and spring 1993.

She took one class over the summer. Price said she's taking 12 hours of classes this fall while continuing to work full time as a manager at McDonald's.

"There's no way I couldn't work," said Price, explaining that she owes too much money.

Price said she got caught up in the credit crunch when she came to college. "I had never had a credit card until my freshman year in college."

Price had saved money in high school. Most of her savings ended up going to pay credit-card debt.

"I had no clue I would get in this much trouble," said Price, who believes Southeast students would benefit from a financial management seminar.

"One of my old roommates got into a lot of trouble," recalled Price. "She had to take out a (student) loan to pay for her credit cards."

Price, herself, is finding it hard to pay off her credit-card debt. "I can't get ahead at all, and I am always living from paycheck to paycheck."

All this credit-card debt is a concern to Patricia Soileau, assistant branch manager of the Consumer Credit Counseling Service office in Cape Girardeau. "We see a lot of students," she said.

Soileau said she doesn't have exact numbers on how many college students the credit counselors deal with in the course of a year. But she said, "I'm sure in a year we probably do over 100."

The credit counselors see about 50 people a week with credit-card problems, including students.

Since November 1990, Southeast has allowed students to pay their tuition and other fees with credit cards. The university accepts MasterCard and Visa.

"We are exploring other credit-card possibilities like Discover and American Express," said Bill Duffy, assistant vice president for financial affairs at Southeast.

He estimated that 20 to 25 percent of Southeast's students pay at least some of their fees by credit card.

Duffy concedes credit cards are a way of life in this country. "I think it is probably becoming more of an exception that schools are not accepting the credit cards," he said.

"I haven't heard any complaints from students concerning the university accepting credit cards," said Duffy.

But such a policy doesn't please credit counselors. "I don't think it's a good idea, myself," said Soileau.

Still, she said, most students she sees are those who have gotten into financial trouble because of using credit cards to buy clothes or other merchandise. "I've only had one student who came in here, who had paid the university fees with a credit card," she said.

Southeast's Duffy says it's mom and dad who use the card to pay for their son's or daughter's education. "I would venture to say the majority of credit card payments made for tuition are made by the parents as opposed to the students," he said.

Duffy advises students to use credit cards only as a short-term arrangement in paying their college fees. "I don't suggest ringing up your college education on a credit card."

Said Duffy, "The bottom line is it is a convenience. It is there as a convenience for the students and their parents. We are not looking at making any money off of it or putting any students in additional debt."

Soileau said most of the students with credit card problems "are going out and charging at department stores and getting cash."

Credit-card debt on average runs between $16,000 and $18,000 for clients of consumer credit counseling offices nationwide. But for college students, the credit-card debt is much lower, generally averaging between $3,000 and $4,000.

The counseling service, which is run through donations from creditors, sets up a payment plan so that a person can pay off his or her debt within three years.

Soileau said the local office sees college students as young as 18, as well as older students preparing to graduate.

Soileau said it's important to have a good credit rating. "I had one nursing student who told me that some of the places had turned her down for a job interview because of her credit rating. It's easy for students to resort to the plastic. Most young kids don't think about the consequences," she said.

When they go to college, many students find themselves on their own for the first time. "It's like all of a sudden, they have all this freedom, and they get these cards and $500 credit limits," Soileau said.

The credit card companies don't check to see if the students are working. While a $500 credit limit per card is common, a student with several credit cards can run up thousands of dollars of debt, she said.

Those students she sees generally have from three to five credit cards. "It makes it easy to have money when there is no money," she said.

"Most of them have no background with financial management," Soileau said. For many students, budgets are a foreign concept.

But Soileau said students who seek help from the credit counselors are taught how to live on a budget. "It's never too late," she said.