NIU provides counseling and legal assistance for students who have credit card debt.

Seventy-five percent of 589 college students surveyed by Penn State researchers admitted they had credit card debt.

Though NIU students were not included in the survey, it is common for students to get into credit card debt and come to the office, said Lynn Richards, assistance director of the NIU Student Legal Assistance office.

There are a few different reasons why college students get into credit card debt, Richards said. Students do not realize paying the minimum amount will get them into debt and most students don’t have much income.

They should work on a cash-only basis – necessities should be first and then students can look for other things to buy, she said.

Some students do not know that $10 in two year’s interest can be lot of money, Richards said.

Credit card companies don’t tell students about penalties and other fees, she said. Then, the payments students start making are for late fees, not for the debt itself.

Debt consolidation companies are not a good option because these companies add more charges for services, Richards said. Non-profit companies also charge for each check they write, she said.

Students can also try to negotiate with their credit card company.

Sometimes, these companies can stop adding fees for six months, so the student can spend less by having an agreement with the company, Richards said.

“Have a realistic budget,” she said.

And discipline is another main thing, said Doug Clinton, NIU associate accountancy professor. Students have to pay off their balance.

If a student does not pay $1,000 debt in two years – on 21 percent interest – this student will have a debt of $1,516, Clinton said, aside from any fees and extra charges.

However, there are compulsive shoppers who cannot stop – and besides legal help, they also need physiological treatment.

The NIU Counseling and Student Development Center helps students with the physiological part of the issue if the student is going through depression or cannot study because of the debt.

Problems can be avoided if the student knows how to live on a budget, Richards said.

Students who need any legal assistance can make an appointment by calling 753-1701 or stopping by the office on the sixth floor of the Holmes Student Center.

Those who need physiological help can call the Counseling and Student Development office at 753-1206 or visit the Campus Life Building, Room 200.

Editor’s Note: This article is the second part of a two-part series on credit card debt.