Credit Education 101 Falls Short for Fresh Freshman

September 1, 2004 -- According to a PIRG study, interest from credit cards can tack on $3,200. Today's news guest, Larry Chiang, a credit industry insider since 1989, reveals secrets to winning the college debt game. His August radio interview tour covers consumer credit and banking tips, strategies, techniques and ideas. They improve student cash flow by:
1.    Avoiding bank "junk" fees. There is a simple way to avoid exorbitant penalty fees- be organized. A separate file folder marked, "Current Bills" goes a long way in paying on time. A study at www.UCMS.com studies show that over 55% of students charged with a late fee was due to mishandling / misplacing a credit card statement. A fail-safe technique is to write on the front of the folder, "Billing address, Payment due date (i.e. 15th of every month) and checklist the last month you paid. Why?! College students often have mail that doesn't get to them.
2.    Bouncing check fees. Simple recording of every check in your check register is a great habit to start. Bouncing checks lead to more bouncing checks. Did you know that bank rules are rigged against you?! Lets say that you have $300 in your account and your write three checks $20, $15 and $350. You'd actually bounce three checks and not just one. Junk fees of about $75. Yikes! It is against the law to cross off routing numbers at the bottom of checks because it takes the bank extra days to clear the check.
3.    Get a credit mentor. Your parents love you but they can't help you with outdated techniques from when they went to college. Sorry, but here are tons of common credit card mistakes parents preach. Google credit topics for your particular creditcard questions.
4.    Forget about steals and deals. Credit card companies that offer points, rebates or incentives to college students are not your friends. Neither are credit cards that donate to your alma mater. The ad splash promise—but the fine print takes away. Worry about credit card ‘steals and deals' when you're working, your company is flying you first class and reimbursing your credit card. Collect your "bonus" points then.
5.    College freebies at table set ups. Here's the pain from a Michigan State student, "My free t-shirt cost me about $1,000 in interest". Buy yourself a car with money that you otherwise would have paid in credit card interest. Calculate your pain avoided by visiting, www.credithealthy.com/css/jscalec.asp
6.    Be a semi organized adult at college. Your credit / banking statements need to be checked and filed SEPARATE FROM your Chem 101 notes. Any mistakes need to be disputed. Free ones are available on the Internet…Google, "free form letters creditcard.org" to correct them.
7.    Work your credit card like writing a check. Charging on a credit card is made so easy that your sum total purchases may surprise you at the end of the month. Buying a couple CDs, a little food, a pair of jeans and a sweatshirt can easily add up to over $200! Solution? Use a transaction recorder! Get on google to find FREE ones. Google, "creditcard transaction recorder condom".

Larry Chiang, Founder of UCMS, Background - His company has credit educated 28 million in a grassroots fashion. Larry Chiang founded UCMS in 1989 when he was a sophomore in his dorm room. "I saw a huge need for students to get the heads up on what good credit really means. It is the responsibility of those who sell credit cards to college students to disseminate these tips." UCMS is the only company to integrate credit education into the sales process. He pushes Congress to protect students more and has testified in Congress. UCMS has sales of $15 million, over 360 trained representatives that facilitate credit seminars on-campus, and over 10,00 talks annually. CreditHealthy.com is an extension of the on-campus educational efforts. He can be reached at.................. larrychiang (at) ucms dot com.




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