The Courier Journal - "Students Hear Downside of Credit" (Jefferson County, IN) 4/28/08
Monday, April 28, 2008 at 02:38PM Students hear downside of credit
Program details results of abuse
Hoping that high school students will see through the promises and free T-shirts handed out by credit card companies, nearly 50 local judges, attorneys and business professionals taught them last week about the consequences of credit abuse.
"It's all about the worm versus the hook it's hiding," said Dennis Ostrowski, a Louisville bankruptcy attorney with the firm Mapother & Mapother.
"They'll try to get you in with the worm, but you have to remember that under every self-respecting worm is a hook," Ostrowski told a group of Moore Traditional High School students.
Ostrowski and Kelly Lee, who deals with credit checks for HomeServices Lending, led several credit-education sessions for seniors at the school, off Outer Loop. Moore was one of a handful of Jefferson County schools included in the start of the CARE program. CARE stands for Credit Abuse Resistance Education.
By week's end, about 2,000 seniors had been through the sessions, said Donna Benton, a district practical living specialist. It's important for seniors to get this information before they start college and jobs, Benton said.
The national CARE program was adopted by a new partnership involving Jefferson County Public Schools, the Kentucky Bar Association, the Louisville Bar Association and the Kentucky Council on Economic Education. It was developed by U.S. Bankruptcy Judge John C. Ninfo II of the Western District of New York.
He started the program because people age 18 to 24 are particularly vulnerable since they are entering an uncertain job market and credit companies prey on them, according to a news release from the school district.
"They prey on you because they think you don't know anything," Ostrowski said to students. "But if you pay attention to the fine print and you pay these puppies off when you get them, there's no problem. Credit is not all bad, but you have to get smart about it."
Ostrowski used a credit card application his family received in the mail a few days earlier as an example.
First, the letter says the company is offering a zero percent APR for interest, he said.
"Well, that sounds pretty good," Ostrowski said. "But, it's the worm."
In the tiny print at the bottom, the letter says the company reserves the right to change APRs at any time, for any reason, Ostrowski pointed out.
"Ah, the hook," he said to the students, some of whom chuckled.
Senior Cereka Myrick, 17, said she appreciated the credit information, especially since she's been starting to talk about things like that with her family.
"I just got a checkbook from the bank and my mom has been helping me practice and keep track of it," Cereka said. "You hear about lots of people just going crazy and getting all kinds of cards and you don't want to end up like them."
Her classmate Bruce Herring agreed. He had heard of a woman who had 30 credit cards.
"I have a debit card and I'd rather save up for things I want because that's smarter," said Bruce, 18. "But I'm not sure how many students understand that right now so it's good that they came here and we spent some time reviewing."
Ostrowski and Lee talked about some positive uses for credit cards.
Establishing good credit is key to being able to get a home loan someday, Lee said.
"But all you need to do is have one credit card and use it for something like gas, paying it all off each month," she said. "Come up with a budget for yourselves. Write down everything you've got coming in and everything coming out."
Reporter Sara Cunningham can be reached at (502) 582-4335.
Reader Comments (2)
Credit Abuse Resistance Education (CARE) Program have been found in Buffalo past 6 years, and it has spread to all 50 states.The program teaches students how to use credit and the dangers of abusing consumer credit.
John Philips
http://www.shepelskylaw.com
Greetings all members,
I would just like to say hello and let you know that I'm happy to be a member - been a lurker long enough :)
Hope to contribute some and gain some knowledge along the way....