Staff Writer

ONEONTA — State University College at Oneonta senior Rachelle Ray has two major credit cards and "one for just about every store in the Crossgates Mall."

But along with those cards comes about $7,000 in debts.

"I love to shop," she said. "You just start using it for those little things, and it just builds up."

Experts say Ray's situation isn't unique among 19- to 25-year-olds.

About 30 percent of all college students will graduate with $10,000 to $25,000 in credit card debt, according to a report on ABCNews.com.

Five years ago, 1 percent of personal bankruptcies were filed by those younger than 25. In 1998, young people filed 4.9 percent, according to the same report.

Locally, some students said they have credit cards and don't hesitate to use what seems like "free money."

"They're just there in front of you, and you don't have to pay anything — it seems — to buy things," said Ray, 21. "I'm a compulsive shopper, and I don't have a lot of money, so this seems like an easy way to buy."

The problem could be attributed to the number of easy-to-apply-for credit card offers young people receive, both through the mail and on campus, said Neal Miller of New Millennium Management Group in Oneonta.

"We are inundated as a society by these offers," said Miller, a financial adviser. "The kids don't understand they have this liability."

Miller said he has seen clients with children who have up to $5,000 in credit card debt.

"They go out and they spend this $1,000 or $2,000," he said. "It's become a big problem with the youth today."

That's what happened with SUCO junior Jason Glosenger, who says he now has about $2,000 in debt.

"I got a card when I was a freshman," the 21-year-old said. "I just started using it for stuff — plane trips to visit people. I maxed it out."

Now $2,000 in debt, Glosenger said he has consulted a debt-consolidation company for help.

"I pay them $65 to $70 a month," he said. "They say I should be paid up by the time I graduate."

But Miller said debt-ridden people should be careful when looking at debt-counseling services.

Many he said, are not-for-profit but do charge a fee.

Others, Miller said, require people to take out a home-equity loan to pay off their debts, but then they have to pay that loan back.

Meanwhile, he said, it's often a vicious circle for credit users.

"As long as they keep using the card and paying the minimum payment, their credit rating stays good," he said, "which only means they get more and more solicitations."

Ray said she sees such solicitations in her mailbox every day.

"They push these credit cards," she said. "One company said I could have a $10,000 limit. I should not be getting a $10,000 limit."

A spokesman for the Visa credit card company would not comment, saying individual banks solicit and issue cards,

Mastercard did not return a phone call for comment.

SUCO sophomore Wendy Bellanger said she avoids the pitfalls of credit by using a debit card linked to her checking account.

"I know if you do get in debt, it's really bad," Bellanger said. "This way, I only spend the money I have."

Glosenger said if he could go back, he'd be more careful.

"I'd get one credit card and use it smartly," he said. "I wouldn't do all of the impulse buying."

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Carolyn Norton can be reached at cnorton@thedailystar.com or (607) 441-7218.