There’s a reason why credit card companies court college students—they are easy targets. In 2004, the average undergraduate had a credit card debt of $2,169. In addition, 43 percent of undergraduates had four or more credit cards (Nellie Mae 2005). Some colleges have come under fire for not only allowing credit card companies to solicit students on campus but also receiving money from the credit card companies, either as a lump sum or per each completed application (Norvilitis 2002). Why have colleges become such a focus for credit card companies? These companies expect students to not be able to pay off their balance, and all that accruing interest means increased profit for the companies issuing the credit.

People with ADD can find it rather easy to use their credit cards. It’s easy to forget that you’re spending real money. You just hand the cashier a plastic card; you don’t actually see the money leaving your pocket. And, since people with ADD are more likely to experience depression and anxiety, they may have a tendency to engage in “retail therapy,” raising their credit card bill.

In the past, financial experts recommended staying away from credit cards and using them only in emergencies. However, with the technology available today, it is difficult to avoid using cards, especially if you purchase items online. If you do get a credit card, get one with a very low limit—no more than $500. Credit card companies may offer you low “introductory” interest rates, but those interest rates can go up after a few months, or they may increase dramatically if you miss a payment. Don’t fall for the nice freebies you get when you apply for a credit card. That stuffed animal can wind up costing you several hundred dollars in interest. Don’t fall for the “cash back” promises either. Credit card companies offer these in order to get you to use your card more; in reality, you’ll usually wind up paying more in interest than you earn back in rewards.

In addition, having too many credit cards lowers your credit score, which may affect the interest rate you receive when you apply for a loan. (A credit score is a number between 300 and 900 that is determined by your past and current credit history, including credit card payments and loan payments, any collection agency action against you, and your current debts on loans and credit cards.) The higher your credit score, the more likely you are to be approved for the loan you’re applying for, and the more likely you are to receive a lower interest rate. If you have a low credit score, you may be turned down for a loan or get a high interest rate. To keep your credit score high, keep only one or two credit cards, use them as little as possible, pay off as much of the balance as you can each month, and make payments on time.

If you are so far in debt that you can’t even make your minimum payments on your credit cards every month, consider contacting a credit counseling agency, such as the National Foundation for Credit Counseling (NFCC); see the Resources section at the end of this book for information. However, beware of any “credit counselors” or agencies who make you pay a big fee up front or offer you a repayment scenario that seems too good to be true. Bankruptcy is also an extreme option, but keep in mind that, though using a credit counseling service may or may not affect your credit score, filing for bankruptcy will certainly affect your credit—for ten years.

Use of Debit Cards

Because debit cards withdraw money automatically out of your account, you have to keep track of how much you’re spending. Banks make a lot of money from overdraft fees, and those fees come directly out of your bank balance. These fees, deducted from your account, can quickly compound into a major cash flow problem, so watch your account carefully, especially when your balance may be getting low. You might want to consider getting a prepaid debit card. It’s much easier to keep track of the money spent, and when you run out it won’t result in lots of overdraft fees.

Never use your debit card to order something online. Your account number can be compromised by identity thieves and your checking account can be wiped out. Using a credit card is a wiser choice, because if you notice unauthorized charges on your account you can dispute them with your credit card company. With debit cards, on the other hand, the money is already gone by the time you file a complaint.

Photocopy or Scan the Cards in Your Wallet

If you are prone to losing things, make sure you photocopy or scan the front and back of every card in your wallet. If your wallet is lost or stolen, you can just look at the copies to get the number to call to report your credit card as stolen or missing. Don’t hesitate to call, especially if you think you may have left your wallet or purse somewhere. The credit card company can block the use of your credit cards so no one can use them; however, keep in mind that they will likely need to reissue new ones, so you’ll be without your credit cards for a few days until the new ones arrive.

Excerpt from Making the Grade with ADD: A Student’s Guide to Succeeding in College with Attention Deficit Disorder by Stephanie Moulton Sarkis, Ph.D.