Pizza for Debt by Suzanne Hadley on 10/03/2006 at 12:58 PM

For years we've heard that credit card companies target college students. But according to this USA Today article, it appears things are getting worse.

Each fall, concerns about young adults falling prey to aggressive credit card marketing resurface as 17 million college students flock to campuses across the USA. Nearly a dozen states, including New York and California, have made it harder for card companies to market on public campuses. And a growing number of colleges, on their own, have begun to impose restrictions.

But these steps belie a stark reality: Credit card marketers today are as aggressive as ever — just more creative — about reaching students. Some solicit students by phone or e-mail, and flood their mailboxes with credit card applications. Other marketers set up tables around heavily trafficked campus areas, hawking free sandwiches or pizzas to hungry students to get them to sign up for a credit card.

Pretty low, if you ask me. Offering pizza in exchange for credit cards with horrendous interest rates (which the companies often don't even reveal until after the student has signed up)? Sneaky. Student lender Nellie Mae reports that in 2004 three out of four college students had credit cards, and more than 40% had at least four. This adds up to the average debt load for seniors (from credit cards alone) of close to $3,000.

Thanks to parental guidance (and a credit card with a $500 limit), I graduated from college without credit card debt. I'm going to encourage my little sister, a college sophomore, to skip the pizza and do the same.

HT: The Cowards

Comments

[1. eliza said the following at 12:24 AM on Jun 3]

1

Hi,

your artice "Pizza for Debt" it is very nice. your suggestion is very interesting. i learned a lot of wealthy information.

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eliza

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[2. Eliza said the following at 9:26 AM on Jun 3]

2

Just a note: eliza #1 is not this Eliza, the one who usually posts under that name.

But, since I'm writing, I might as well say that as a naive college student, I think I signed up for a credit card for something as silly as a free datebook. I cut the card up right away, but that didn't end the crazy junk mail--they were after me after that!

Now, of course, I think a datebook (or pizza) is a pretty lame gimmick. But when one is a college student the word "FREE" is phenomenally enticing!!