Credit card debt, low credit scores and identity theft are major issues for college students.
Yvonne Williams travels the country speaking to students and giving presentations about money management.
Williams warned Auburn students about these things in a seminar Thursday.
"I wish I had something like this when I was your age," Williams said.
Williams addressed additional money topics important to college students.
"Students learned about ... the importance of saving money and living on a budget," said Lucy LaMar, marketing manager in the Office of Communications and Marketing. "It (is) the third year we've hosted (the seminar) for all students on campus."
An average college student has $4,138 worth of credit card debt and 70 percent of these students have maxed out their credit cards, Williams said.
"If you just took $4, five times a week and dropped it in a no-risk retirement account, you'd have $100,000 by age 65 to do with what you please," Williams said.
She laid out areas students should look for when reviewing credit card options.
APR, annual percentage rate, shows how much a company charges for amounts carried over month to month when the bill is not paid.
Some credit card companies charge a teaser APR rate, which gives customers a low rate for a defined amount of time, then raises the rate to a higher level once that time period has passed.
To avoid debt, Williams advised students to ask a credit card provider what its APR is and if it will remain at that rate to avoid being pulled into a teaser rate.
A student's debt can affect his or her credit score.
"You need to establish credit to live in this country," Williams said.
She said the best way to establish credit safely is to get something small, pay the card off on time and keep doing it.
"Most college students have no clue what their credit score is," Williams said.
Williams reminded students that paying bills on time helps credit scores.
"A credit score is a lot like a GPA," Williams said. "Once it goes down it is really hard to get it back up, but it's possible."
The median credit score in the U.S. today is between 700 and 720, with the lowest of the range at 300 and the highest at 800.
"If you are late paying a bill 30 consecutive times, your credit score can drop as much as 100 points," Williams said. "We don't like to talk about this stuff: bills, debt, money."
But ignoring the money issue can lead to problems, such as identity theft.
Someone can buy an identity for $15 on the black market, Williams said.
She suggested students protect themselves by examining their credit report regularly.
"Two pieces of advice: don't incur lots of debt in college and start saving now for the future (including retirement)," LaMar said.
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