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 Preshow #1 DebtReturn to index of stories... |
Now on New Hampshire Outlook: 2 -point 1 trillion dollars. That's how much credit card debt Americans carried in February of 2005. And an increasing number of people are running into trouble paying off their montly bills amid mounting finance charges. |
| Hello/Intro Debt Return to index of stories... |
Hello. I'm Beth Carroll. Welcome to this edition of New Hampshire Outlook. Are you one of those who owe credit card companies big time? You're not alone. The Federal Reserve says consumer debt has doubled in the past ten years. In this program we'll learn how to manage the credit crunch. We continue our Outlook on Money series with the story of a young woman who amassed thousands in credit card bills. She is slowly pulling herself out of debt. |
| Youth Debt Return to index of stories... |
Credit Card Debt N1 - Becky Schwab was barely out of high school when she learned how easy it is to get credit. Becky 1417 - "I just applied for it and I was approved for it, and they gave me a hundred dollars credit. That was the first amount I got." N2 - And it didn't take long to spend it. Becky 1446 - "It was very exciting. I had a hundred dollars in my hands that I thought, wow, I can use this, I can buy what I want with this, and it was, I remember buying the first thing that I bought and it was very exciting." N3 - Becky is a University of New Hampshire senior. She lives in Concord with her family. The first item that showed up on her credit card statement was a backpack. Many other items soon followed. Becky 1530 - "I remember buying stuff that I really didn't need. I bought the backpack, I bought clothes, I'd go out to dinner with friends, I'd go to the movies. I would just spend it on things that I really didn't need to have. And it just accumulated so fast. I mean, it was incredible how fast it just added up." Carol 235ish - "We know that many college students have a lot of issues with money; a lot of them work very hard to earn money, but it's more important what they do once they've earned it." N4 - That's what Carol Bischoff wants to teach students. She works with Project C.A.S.H., a program supported by the University of NH to help students manage money and avoid debt. Carol 210 - "And the primary goal is to help students at the University become more aware of both credit and cash, and how they use it." N5 - Karen Blass helped start project C.A.S.H. It stands for creating a savings habit. Karen 215ish - "And we wanted to involve students in the project too. We felt that it would be far more effective to have peer educators go out and to work with students and share their experiences." N6 - Peer educators talk to students about money and credit issues. Karen 700ish - "The latest statistics done by Nelly May indicate 83% of undergraduates have a credit card. They average number of credit cards between students is somewhere between 4 and 6. / Also an interesting statistic is that out of the students who have credit cards as freshman, 3 out of 5 of those students will have maxed it out by the end of the year." Becky 1555 - "I started with a 100 dollar credit limit and then over three or four months when I was consistently paying off my bill, they would raise it, and it went up to 200, and then it went up to 500, and then it was1000, and every time it kept going up I kept using it. So eventually, I think by the time it was all said and done, I had used about 6,500 dollars worth of credit." N7 - By the age of nineteen, Becky found herself with 20 credit cards. Yes, twenty. Becky 1640 - "Yeah, because what I would do is I would open one and then when the interest rate would start to get high I would switch it to a zero percent card, and then as soon as that six-month period was up at zero percent, I would switch to another zero percent card." Dan 5720ish - "If you look at the statistics 45% of college students have over $3,000 in credit card debt and 10% of them have over $10,000 credit card debt." N8 - Dan Hebert is president of the NH Jump$tart Coalition. The group teaches financial literacy to young people. He says those young people spend a lot of money and credit card companies know that. Dan 5700 - "They target college students because kids spend money. I mean teens, American teens on average will spend $91 per week. That makes them, if you add it up, that makes them a $169 billion dollar industry." On-Camera - Many freshmen are particularly vulnerable to credit card debt. They are on their own for the first time. Few are financially literate and quickly find themselves in trouble. Carol 530ish - "Some extreme circumstances were so bad that there were students who actually committed suicide because of the credit card debt. The credit cards and all their bills they had spread out all over their bed. Just a terrible, terrible, unnecessary tragedy, so we want to be sure students have the information and know that there are other ways that they can get help, and help them make better decisions." Becky 1835 - "When I got up to that 6500 that was in January 2003, I was having nightmares and panic attacks about my credit card debt, and I decided I had to stop, and I created a budget which is something that I had never done before." N9 - And she cut her credit cards into pieces. Becky was then able to save some money. Becky 1905ish - "And that is what I started doing, I started putting three or four hundred dollars down a month on my credit card which killed, but I did it because I had to do it." Carol 950ish - "One of the real key factors we look at, and try to help students focus on, is, if you're thinking of buying something- is this a want or a need? And often times, if you can really get it down to just that basic, they'll also be able to see that they really don't have to purchase some new outfit or, whatever it might be." Standup: Once you decide whether something is a need or want, then it's time to figure out how you're going to pay for it. Dan 300ish - "First and foremost I would say get a checking account and have a debit card attached to that checking account. And use that debit card in place of a credit card. That credit card should only be for emergencies as a college student. Now the reality is that it isn't going to happen. But if in fact you do use your credit card, keep track of your purchases, make sure you pay it off every month and operate on a budget." N10 - By the way -- Becky's $6,500 credit debt has been cut in half. Becky 2145 - "I am not where I want to be, I still have a long way to go paying off my credit cards, but I've definitely learned a lot from it. I have learned that I can't trust myself with credit, and once I get rid of this credit card I am going to get a card with a low credit limit, like 500 dollars and I am only going to use it for emergencies or basically I will use it for things that I can pay off every month, like if I get gas with it I can pay that off every month." |
| Intro Conversation Return to index of stories... |
It's no secret that many of us are "inattentive" when it comes to our credit card accounts and spending. Here to talk about managing our debt: Becky Palmer, of the Consumer Credit Counseling Service of New Hampshire and Vermont. Becky, Welcome. Q BECKY: As we saw in Becky Schwab's case -- credit is easy to come by --whether you can afford it or not. Why then do credit card companies INCREASE Borrowing Limits -- regardless of a person's ability to pay? |
| Debt Conversation Return to index of stories... |
Q The average household carries a credit card balance of $7500 to $8,000.. ** Do people tend to SPEND "More" if they use a CREDIT card rather than cash? Q BECKY: A lot of us pay only the required MINIMUM each month. Even with low rates --like 2-percent -- won't it take YEARS to clear that debt? ** even though many of us could Pay MORE than minimum- we don't. Is that financial ILLTERACY or irrational behavior? Q BECKY: We hear a lot about the TRUE cost of credit. What does that mean and how is it calculated? Q What exactly is a CREDIT score. Landlords and employers use it. What factors determine your credit score? ** What do you need to know about your score? Q Is paying off your credit cards every month good for your credit score? Q Credit card interest rates can be daunting. How do you choose the right one? Q Bankruptcies have doubled in the past 10 years. Are credit cards -- in large part-- to blame?? Q What are some of the COMMON MISTAKES people make when managing their credit? Q Your organization works with people who are in over their heads. What's the first thing you advise people to do? Q Is there a way to repair credit once it's been damaged? Q A new law is allowing Americans to get a free copy of their credit report every year. People on the East Coast will have that opportunity this fall. Can you tell us more? WHY we should do this? Q If your debt has spiraled out of control -- or, you feel you've been treated unfairly by their credit card companies. Where do you go for help? Q The abundance of convenient credit gets a lot of people in trouble. So, how do you become financially INFORMED? Q There's a tendency to place BLAME on the credit card ISSUERS -- but the industry isn't forcing people to BUY things. There has to be CONSUMER RESPONSIBILITY -- doesn't there? ============= Q Credit scores are becoming increasingly important. Employers, landlords, insurance agencies and others are looking at them more and more. How is credit scored? Q What is FICO? Q Are low income people paying a disproportionate share of finance charges? Why? Q This is not a show on bankruptcy. but there's been a steady increase in the number of filings across the country. Some are due to medical costs, but others simply file to escape debtors. What are the consequences of filing bankruptcy and what are the alternatives? |
| Intro LifeSmarts 1 Return to index of stories... |
Some New Hampshire teenagers took the ultimate consumer challenge during this year's "LifeSmarts" Competition. answering questions on a number of life skills-building topics, including personal finance and consumer rights. Six teams of students from all over the state competed in the "LifeSmarts" Competition in March at Southern New Hampshire University. "LifeSmarts" is a nationwide program coordinated in this state by New Hampshire Jump$tart. The questions used during the competition in New Hampshire are the same used nationwide by all the states taking part in the LifeSmarts competition. Sullivan County 4-H won this year's state championship round to represent New Hampshire in the national "LifeSmarts" competition. |
| Intro JumpStart Return to index of stories... |
How much do the young people in your life really know about handling their own money? According to the JumpStart Coalition, they don't know enough. As Allison McNair first reported in 2002, they could be managing their cash better. |
| Tag JumpStart Return to index of stories... |
Since we first brought you that report, Hazel Molin's daughter has been able to save her money. She's fourteen now and using the so-called "parent bank" successfully. She says she's saving for trip to Washington, DC with her class and feels confident that she'll meet her goal. |
| Web Pointer Return to index of stories... |
Just a reminder New Hampshire Outlook is available online on-demand at nhptv.org/outlook. |
| Tomorrow Return to index of stories... |
On the next New Hampshire Outlook - we continue our Outlook on Money series with a closer look at living on a budget. We'll explore the basics of budgeting and meet a woman who set her priorities and is now on her way to achieving her goals. |
| Goodnight Return to index of stories... |
That concludes our program. Thanks for watching. I'm Beth Carroll. We'll see you next time. |
| Intro LifeSmarts Return to index of stories... |
Some New Hampshire students took the ultimate consumer challenge during this year's "LifeSmarts" Competition. answering questions on a number of life skills-building topics, including personal finance and consumer rights. Six teams from all over the state competed in March at the "LifeSmarts" Competition at Southern New Hampshire University. "LifeSmarts" is a nationwide program coordinated in this state by New Hampshire Jump$tart. The questions used during the competition in New Hampshire are the same used nationwide by all the states taking part in the LifeSmarts competition. Sullivan County 4-H won this year's state championship round to represent New Hampshire in the national "LifeSmarts" competition. |
| key: Consumer Return to index of stories... |
NEW HAMPSHIRE OUTLOOK Air Date/Time: 04/12/05 HOST: Beth Carroll Length: 07:30 minutes Now on New Hampshire Outlook: 2.1 trillion dollars. That's how much credit card debt Americans carried in February of 2005. And an increasing number of people are running into trouble paying off their montly bills amid mounting finance charges. Hello. I'm Beth Carroll. Welcome to this edition of New Hampshire Outlook. Are you one of those who owe credit card companies big time? You're not alone. The Federal Reserve says consumer debt has doubled in the past ten years. In this program we'll learn how to manage the credit crunch. We continue our Outlook on Money series with the story of a young woman who amassed thousands in credit card bills. She is slowly pulling herself out of debt. PRODUCER/REPORTER: Beth Carroll NAME OF PARTICIPANTS: Carol Bischoff\Wellness Educator, UNH Karen Blass\Educator, UNH Cooperative Extension Dan Hebert\President, NH Jump$tart Coalition |
| key: Consumer Return to index of stories... |
NEW HAMPSHIRE OUTLOOK Air Date/Time: 04/12/05 HOST: Beth Carroll Length: 12:16 minutes Now on New Hampshire Outlook: 2.1 trillion dollars. That's how much credit card debt Americans carried in February of 2005. And an increasing number of people are running into trouble paying off their montly bills amid mounting finance charges. It's no secret that many of us are "inattentive" when it comes to our credit card accounts and spending. Here to talk about managing our debt: Becky Palmer, of the Consumer Credit Counseling Service of New Hampshire and Vermont. Becky, Welcome. PRODUCER/REPORTER: Beth Carroll NAME OF PARTICIPANTS: Becky Palmer\Consumer Credit Counseling Service |
| key: Consumer Return to index of stories... |
NEW HAMPSHIRE OUTLOOK Air Date/Time: 04/12/05 HOST: Beth Carroll Length: 01:16 minutes Now on New Hampshire Outlook: 2.1 trillion dollars. That's how much credit card debt Americans carried in February of 2005. And an increasing number of people are running into trouble paying off their montly bills amid mounting finance charges. Some New Hampshire teenagers took the ultimate consumer challenge during this year's "LifeSmarts" Competition, answering questions on a number of life skills building topics, including personal finance and consumer rights. PRODUCER/REPORTER: Beth Carroll NAME OF PARTICIPANTS: Kathleen Belanger\Chairperson, LifeSmarts |
| key: Youth Return to index of stories... |
NEW HAMPSHIRE OUTLOOK Air Date/Time: 04/12/05 HOST: Beth Carroll Length: 01:16 minutes Now on New Hampshire Outlook: 2.1 trillion dollars. That's how much credit card debt Americans carried in February of 2005. And an increasing number of people are running into trouble paying off their montly bills amid mounting finance charges. Some New Hampshire teenagers took the ultimate consumer challenge during this year's "LifeSmarts" Competition, answering questions on a number of life skills building topics, including personal finance and consumer rights. PRODUCER/REPORTER: Beth Carroll NAME OF PARTICIPANTS: Kathleen Belanger\Chairperson, LifeSmarts |
| key: Consumer Return to index of stories... |
NEW HAMPSHIRE OUTLOOK Air Date/Time: 04/12/05 HOST: Beth Carroll Length: 04:30 minutes Now on New Hampshire Outlook: 2.1 trillion dollars. That's how much credit card debt Americans carried in February of 2005. And an increasing number of people are running into trouble paying off their montly bills amid mounting finance charges. How much do the young people in your life really know about handling their own money? According to the JumpStart Coalition, they don't know enough. As Allison McNair first reported in 2002, they could be managing their cash better. PRODUCER/REPORTER: Beth Carroll NAME OF PARTICIPANTS: Suzann Knight\UNH Cooperative Extension Carlo Nittoli\Teacher, Exeter HS Jonathan Pond\Financial Advisor Hazel Molin\Parent |
| key: Youth Return to index of stories... |
NEW HAMPSHIRE OUTLOOK Air Date/Time: 04/12/05 HOST: Beth Carroll Length: 04:30 minutes Now on New Hampshire Outlook: 2.1 trillion dollars. That's how much credit card debt Americans carried in February of 2005. And an increasing number of people are running into trouble paying off their montly bills amid mounting finance charges. How much do the young people in your life really know about handling their own money? According to the JumpStart Coalition, they don't know enough. As Allison McNair first reported in 2002, they could be managing their cash better. PRODUCER/REPORTER: Beth Carroll NAME OF PARTICIPANTS: Suzann Knight\UNH Cooperative Extension Carlo Nittoli\Teacher, Exeter HS Jonathan Pond\Financial Advisor Hazel Molin\Parent |
| Tonight 10:00 Return to index of stories... |
Tonight on New Hampshire Outlook: Join us tonight at 10:00 only on New Hampshire Public Television. |
| WEB PROMO Return to index of stories... |
Tonight on New Hampshire Outlook. . Tonight at 10pm on New Hampshire Public Television. |
| Post Show Log Return to index of stories... |
Tuesday, April 12, 2005: We started at 5:15pm. We had one false start-- Beth didn't have her mic on. All went very smoothly. We finished by 5:45pm. director's log: The show went well. Carl was a little late coming to tape the show and I think missed the fact that Beth's mic was not on so we had to start over. The audio in the first piece was all over the place and I told Carl to not ride the audio because my thought was that he may fix on thing but hurt the next, so any audio glitches are my fault since I told him not to ride it. **Edit 4 is very difficult to hear the audio appropriately. And if I am quickly putting a piece together that is usually the area that suffers most. I wish there was some way to muffle the sound of the air conditioner. It can be a real problem for anyone who edits in there. Other than that the show was great. |
| website Return to index of stories... |
For information on our program, and links to our guests and interviews, visit our web site at nhptv.org. You can see and hear streaming video of our broadcasts. We want to know what's on your mind. Join our discussion forum and tell us what you're thinking. If you have a story idea or comment on our program, click the feedback button. Or, call us at 800-639-2721. |