For many adults, and an increasing number of college students, the only reminder of holiday fun by the end of January is a credit card bill.
"I've spent money that I know I shouldn't be spending - because I don't have it," said LSA first-year student Ernesto Garza.
In 1996, consumer debt in the United States rose above the $1 trillion level, and many Americans are now facing large debts from overzealous credit card spending.
This means headaches for college students juggling academics and budgets - or what's left of them.
A recent study conducted by Roper Starch Worldwide Inc., a New York-based consulting firm, found that 64 percent of college students have a credit card.
Yet, no available public studies have looked in-depth at payment trends of student accounts.
Many students obtain their first credit card when they arrive on campus, after facing unrelenting credit card company representatives lurking in high traffic areas like the Michigan Union.
Industry insiders take varied views on the student market.
"Research shows 'establishing credit' and 'emergency use' as top reasons for students having a credit card," said Visa U.S.A. spokesperson Carolyn Bretschneider.
"And students, as adult members of society, basically have many needs. Common transactions today require payment over the phone with a credit card," Bretschneider said.
She also said that credit lines extended to students tend to be about one-third the amount extended to other adult customers.
While many students make the same arguments about the need for a credit card, the risk of "overspending" can harm almost anyone.
Those who are sympathetic to students' money matters said getting into debt around age 20 is something that should be prevented.
"When I was in school I'd pay the minimum on my credit card bill, and say 'I'm fine,'" said Sonja Terbush, Michigan Credit Union League spokesperson.
"But that doesn't work. If you keep paying the minimum, it will take four to 17 years to pay off a credit card," she said.
With the frequently high interest rates that credit cards carry, students could get into deeper trouble than they may originally realize, Terbush said.
"The credit-card company is going to make quite a bit off of your interest - they're safe."
What most people do not know, said Terbush, is how easily their credit rating may be affected.
"I keep thinking I'll establish a good credit rating," Garza said.
His Visa card, which is currently restricted from use due to unpaid bills, carries a 19.8-percent annual interest rate.
Other students, like Garza, who hope to pay off their overdue bills and re-establish a better credit rating, may be working for a lost cause. Terbush said their credit history is already blemished.
"Once you get a credit card, that company electronically sends the information (to a credit bureau) instantly - they now know everything about you.
"It's slick, easy and happens automatically," Terbush said.
Once something appears on a credit report, the information is nearly undisputable.
"You're borrowing from a loan shark who may not break your leg, but will ruin your credit history," she said. "You won't get that new car after college, or that dream apartment."
Every transaction with a credit card company is reported instantly to credit agencies. Anyone with a credit card has a file - and it could contain a few surprises.
"Even inquiries for new credit cards stay on a credit report for 30 months," said Barry Ross, a credit card marketing representative working in the Michigan Union earlier this week.
"I'm not going to take an application from a student if they've got bad credit," said Ross, who was marketing AT&T Mastercards.
Terbush noted there are alternatives to general credit cards like Visa or American Express, including bank debit cards or credit union cards. Both cards often carry no interest or extra fees.
Many banks now offer a debit card carrying the Visa symbol, which can be used as payment wherever Visa is accepted. The funds come directly from the cardholder's bank account.
"When I use my debit card, I feel it right away," Terbush said.
One LSA junior, who preferred to remain unnamed, said she got her first card during her first year at the University. Now, she said, she's in over her head.
"I can definitely feel it," she said. "I owe over $3,500 on two credit cards, and I don't have a job."
"Research shows that students hold on to their first card long after graduation," said Cathy Cummings, director of American Express public affairs.
"Some problems do occur, but a vast majority of our student customers handle their credit responsibly."
This attitude is a general consensus among two of the nation's leading credit card companies.
"Students tend to be loyal to the first bank they do business with. That's why banks are very keen to solicit to college campuses," Bretschneider said.
Lynn Borset, assistant director of the University Office of Financial Aid, said that in most financial aid cases, students' credit history is not something to worry about.
"We don't look at students' credit rating," Borset said. "However, there is one federal loan that checks the parents' credit rating."
But many private or alternative loans look at students' credit ratings.
A student's credit history may give clues to aid-lenders as to the probability of payback because private education loans are not guaranteed by the federal government.
In this respect, students may want to evaluate their money-management situation before applying for continuing education loans, Borset said.
A host of credit card companies hungry for the student market doesn't make that task any easier.
"I'm disturbed by the fact that a lot of credit card companies try to get students to sign up right away," Borset said. "They sort of barrage students."
One way companies seek to appeal to students is through incentives attached to using the card, like frequent-flyer miles, free phone calls and discounts on clothing.
Other marketing tactics, like a recent Visa print advertisement campaign, try to hook students with a casual, friendly nature.
In one advertisement, a Visa card sits on a white background, and text above it says, "Just in case you decide to buy the books this semester."
People attempting to help students organize their debt and future spending habits said this type of credit card solicitation works against their goals.
"This (soliciting) puts our students more at risk - they're pretty new at managing money," Borset said.
Bretschneider, however, said Visa does not mandate specific marketing tactics for the student market - or any market.
"Each individual bank that issues a Visa card is responsible for their own marketing strategies," she said. "We don't lay down any rules."
Ross and his wife both solicit credit cards at college campuses in Michigan and Ohio. He said he always makes sure students understand what they are signing at his table. Ross said his competitors don't always fully inform students about the terms of the agreement.
Recently, he said, college campuses have been restricting solicitors like him from setting up shop because of the supposed "risk" credit poses to students.
"I told my wife, in five years we're going to both be looking for work," Ross said.
Meanwhile, credit card companies will return to campuses to tempt students with easy credit.
"I worked all last summer and made a lot of money," Garza said. "But it's still just been a struggle."
Counselors in the Office of Financial Aid, located in the Student Activities Building, can provide advice about money management.
"Our office does not just deal with the realm of financial aid eligibility - we can also help students manage their money," Borset said.
In addition, Bretschneider said Visa has created national educational programs to assist students with money management.
"We do put programs together which help students make banking decisions," she said. "And so far, they have been fabulously popular."
Terbush said one plan for cleaning up debt that has already been incurred is simply sitting down and getting organized.
She said students should make a list of their debts, and include the interest rate being charged on each one.
"Knock (each debt) off by the highest interest rate - not the dollar amount," Terbush said.
Then, continuously update the list and make sure that the amount owed is getting smaller.
While this and other tips for handling your debt seem simple, the key is commitment, Terbush said.
"You need to set your limits," she said.
TRW will extend credit holders one annual complimentary copy of their credit profile. To obtain it, contact TRW in writing. Enclose a letter containing the following information: complete name, spouses name, current address, other residences within the past five years, social security number, year of birth, and signature. In addition, enclose a photocopy of verification of name and current address.
Credit profiles will be mailed within three to four weeks of the request.
AJA DEKLEVA COHEN/Daily
In the basement of the Union this week, Barry Ross informs LSA sophomore Rodney Harris of the benefits of a credit card.