By Katie Curley
NEWBURYPORT — Credit problems often start early.
A 2007 study showed more than half of all college students have four or more credit cards. College students polled in a recent credit awareness study averaged more than $5,000 of debt on their credit cards upon graduating.
With the economy facing a credit crisis, Congressman John Tierney will hold a "Consumer Credit 101 Community Workshop" on Wednesday evening at 7 at Newburyport High School to educate parents and students about the dangers of credit cards.
The workshop, which coincides with National Consumer Protection Week, is one of a number of efforts being made locally to educate people about credit. Tierney is holding a series of roundtable discussions this week around the North Shore, and locally the Newburyport Learning Enrichment Center and the YWCA are developing workshops to help people manage their finances.
The workshop in Newburyport will include credit experts and representatives from the Federal Trade Commission, MASSPIRG and District Attorney Jonathan Blodgett's office.
"This has been a developing thing over time, the credit issues keeps coming up," Tierney said. "Students are under stress and have talked to me about the ways they were induced to take credit cards on campus and the conversation developed from there."
While the majority of high school students have debit cards, according to the Federal Trade Commission students could only answer 52 percent of basic finance questions accurately.
Tierney is sponsoring a number of bills on the federal level that would tighten restrictions on credit card companies who target people under 29, but he also wants to educate students on the risks of credit cards and identity theft.
Tierney will caution against low teaser rates, free gifts and discounts that offer low payments at first before skyrocketing and revealing hidden costs.
"We hope they become better consumers. Too many are dropping out of college with financial stress."
Newburyport Learning Enrichment Center is currently working on a workshop titled "Money 101: Financial Literacy," which will highlight the impact of how adults handle, think and feel about money in a light-hearted way.
"The program is open to both adults, families and teens and is really intended to take a broader approach on finances," said director Nancy Earls. "Not just dollars and cents, but lifestyle choice."
The program was spawned from several conversations Earls had with community members who noticed a need for programming to help with everyday budgeting and first-time homebuying.
"We thought if we start something like this, it will inspire people to take the next step and maybe commit to a larger program," Earls said, noting she works closely with organizations such as Community Action in Haverhill that have matching programs.
Earls, the mother of two teenage boys, finds the credit card companies push to target teens scary.
"Teens are constantly bombarded with offers for credit cards," Earls said. "If you don't understand the concept that this is not money that they are giving you but money you will have to pay back with interest, it can be very dangerous."
If You Go
What: Consumer Credit 101 Workshop
When: Wednesday at 7 p.m.
Where: Room 118 of NHS
Cost: Free to the public
