People were transformed into talking credit cards in the Hulman Memorial Student Union Tuesday morning during the Cash Rules seminar and educated on the lures and dangers of fast cash.
Mallory Bannon and Emily Bromm, both juniors, and Matt Lutton, a senior, are from the honor society for business majors, Pi Omega Pi, who conducted the seminar. It was part of the Knowing Sycamores freshman orientation program that students could attend, to be entered in a drawing for free tuition and books in their first semester.
Bromm immediately let the students know that they weren't there to tell students not to get credit cards. Rather, she said, they were there to help them make informed decisions on credit card use and management. Bromm displayed a copy of a credit card form to show that the print may be fine, but the ramifications are big.
Bromm, Bannon, and Lutton performed two short skits and played a DVD made by Pi Omega Pi that took students through the highs and lows of the credit card game. Free T-shirts and extraneous awards lured the skit characters into signing up for a credit card. The acquired credit card took human form in the skits, following the characters around and acting as an extra conscience-and not a good one! Only months after quite a debt had accumulated did the characters realize they had failed to read the fine print and were being assaulted with inescapable charges and drowning interest rates. Suddenly, the "couple extra dollars" for movies, dinners, and hanging out with friends had turned into a few hundred dollars.
"When it comes to credit cards," Bromm said, "no one is special."
Bannon detailed various ways students could own credit cards and still be safe. She warned to immediately sign your card in ink and keep it in a safe place to prevent theft and unauthorized use. Bannon continually stressed the importance of not using your credit card if you will not have enough cash pay it off. Additionally she said to keep the unexpected expenses in mind so you will have money for emergencies.
Because it is so easy to just swipe the card, Bannon said, people find themselves in situations where they are unable to pay debts. She said that rather than letting interest rates accumulate, the company may be willing to work out a payment plan. She noted that it is extremely important to stop using the credit card if you have a debt you cannot pay off. Another reason charges may become unmanageable is by paying only the minimum payment.
"If you go to American Eagle and spend $50, but only pay a $20 minimum payment each month, you will end up paying a lot more money for the original purchase as the interest rates add up," Bannon said.
Should their credit card be stolen, Bannon informed the students that credit card companies offer liabilities that will only require about $50 payment of the unauthorized charges if they are contacted immediately. If they aren't contacted as soon as possible, the liability may go up.
A newer kind of credit card theft occurs on the Internet. Lutton displayed copies of fraudulent e-mails that entice readers to divulge information such as account and personal identification numbers. If you are unsure about a message, he said to go directly to the company's Web site for the information.
"The best thing to remember about e-mails is not to click on a link unless it's from your mom asking you to check out pics (pictures) she posted on MySpace or something. Basically, don't click on a link unless you know where its going," he advised.
He also reminded students to check out the front page in the MyISU Portal for a listing of current circulating e-mail scams.
They concluded the seminar by reminding students that credit cards are not bad when properly managed and to have no more than two at any time to avoid unmanageable debt.
On the Web:
http://misnt.indstate.edu/piomegapi/CashRules.htm
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