Credit Challenges and Common Sense Solutions

Statement

We face challenges every day.

Some of these challenges are mundane. Will we have time to pick up groceries on the way home from work? Will we be able to take the car in for its scheduled maintenance?

But other challenges some face are not so simple - or so immediate. Low credit ratings, overdue bills, and overextended bank accounts are challenges not only in the short term, but can have far reaching repercussions for all of us.

Studies show freshmen who start out college with no debt are likely to owe $1500 to credit card companies by the end of their first year of college. Too many of these students just barely out of high school believe they can handle their debts by themselves, and will often find the "solution" in filling out another credit card application.

The idea of buying a something new - after all, what's another $30 or $50 a month? --is tempting. It's when you look at the long term impacts of such "minor" monthly payments when you realize your multiple credit cards are now costing more in minimum payments that you may be able to afford.

But it is not just college students at risk. On average, households which carry a balance on their credit cards owe more than $13,000.

This startling fact is why I am joining with Nebraska State Treasurer Shane Osborn to host Money Sense 101, a seminar discussing personal fiscal responsibility and how to deal with debt, at the University of Nebraska-Kearney (UNK) campus on September 13 from 3:30 p.m. to 5:00 p.m.

It is the goal of this seminar to arm students, parents, and all Nebraskans with the knowledge to avoid these financial traps.

The Honorable Dan Iannicola, U.S. Department of Treasury's Deputy Assistant Secretary for Financial Education, will join us for the event.

Mr. Iannicola is responsible for overseeing the Treasury's Office of Financial Education, which was established in 2002 to promote access to financial education programs so Americans obtain the practical knowledge and skills to enable them to make informed financial choices throughout their lives. Mr. Iannicola advises the Assistant Secretary of Financial Institutions on matters pertaining to financial education, including the development, analysis and execution of policy.

Money Sense 101 will discuss information commonly found in credit reports, what such information means, and how to obtain and maintain a healthy credit score. Speakers will also discuss challenges facing young people dealing with credit card debt and options available to them.

The event is free and open to the public. Interested parties are encouraged to register or request more information at RSVPtoAdrian@mail.house.govThis e-mail address is being protected from spam bots, you need JavaScript enabled to view it or to contact Smith's Grand Island office at (308) 384-3900.

Source