The dreaded debt…

It’s that time of year again when credit card companies and banks are lurking around campus, hoping to get into your spending habits. Other money bandits are out there with gadgets, mind boggling access fees, download fees, subscription fees, usage fees, convenience fees and maintenance fees.

It’s that time of year again when credit card companies and banks are lurking around campus, hoping to get into your spending habits. Other money bandits are out there with gadgets, mind boggling access fees, download fees, subscription fees, usage fees, convenience fees and maintenance fees.

Such charges have made financial institutes rich- four to six per cent of their income is generated by billing service charges to their customers. In 2003, banking charges totalled $723 million in Canada, up from the $528 million reported in 2001. According to the Cost of Banking, a 2004 report by Industry Canada, ATMs, debit cards and credit cards account for 76 per cent of these fees.

Third year student Connie Mills fell into debt last year for the first time in her life.

“It was like being in university meant also being in debt. I still don’t make enough money and I when I need books or rent is due or even when I am hungry, I break out the plastic,” she said.

Mills confesses that she should have never applied for her credit card in the first place.

“It is just too easy to buy now and pay later. It’s a bad idea” she said. “When I cannot meet the minimum I end up paying interest and late fees.”

And if you think your special five-year relationship with your financial institute saves you access fees – think again. A $40 withdrawal from your debit or credit card at your bank’s ATM is fee-free, but a withdrawal at a competitor’s institute costs you $1.50 for their service, and you get charged another $1.50 for using your bank’s card – what has become known as the “convenience fee”.

Credit cards are another way students get into financial distress.

Felix M

Total
0
Shares

Comments are closed.

Previous Article

Stingers inade Europe

Next Article

THINK globally

Related Posts

Caught in the credit trap

It's that time of year again when credit card companies and banks are stalking around campus, interested in your spending habits. And as some credit card holders will tell you, it isn't necessarily in your best interest to have one. Take second year student Connie Mills, who last year fell into debt for the first time in her life.

Humour:

When I wait too long at the doctor's office, it's not unusual that I begin to experience severe paranoia. Sitting there with all the other sick people and never really knowing what exactly is wrong with them just drives me crazy and I can't help but wonder: Can I catch what they have? Here's an account of my latest visit.

YES Montreal’s Holiday Job Tree is here

YES Montreal, a Youth Employment Services organization, has been offering "English-Language job search and self-employment services to Quebecers" since 1983. And for this year's holiday season, they are ready to do it again. The Youth Employment Services (YES) "is a non-profit community organization that delivers English-language job search and self-assessment services to Quebecers.