University of Central Oklahoma
The Student Voice Since 1903
THURSDAY September 12, 1991
Kelly clears up credit problems Non-profit agency's president talks to UCO sorority Oklahoma killer appearing on `Most Wanted' OKLAHOMA CITY (AP)—Authorities who have been unsuccessful the past six years in trying to capture an escaped murderer are hoping that a spot on a nationally syndicated television program will bring them results. David Gordon Smith walked away from a minimum-security prison in McAlester on Oct. 28, 1985. A segement on Smith will be shown this fall on an espisode of "America's Most Wanted" on the Fox Network. Smith was brought up before the state Pardon and Parole Board in 1984 and the parole board voted unanimously to reject his bid for release. A year later, Smith disappeared.
Uganda silences condom reports KAMPALA, Uganda (AP)—Uganda, which has the highest number of reported AIDS cases in Africa, has ordered state-run media to stop announcements about condoms and their role in preventing the spread of the disease, a paper reported Saturday. Paul Etyang, the minister of information and broadcasting, issued the directive Friday without explanation, according to the state-run newspaper New Vision. The order follows strong criticism of the government's anti-AIDS campaign from Christian and Islamic religious leaders.
By Penny Owen
Staff Writer
Gloria Kelly decorates her office with jars containing pieces of 55 cut-up credit cards in them. The contributor, who came to Kelly after unsuccessfully fighting off the creditors at his doorstep, was $150,000 in debt when he handed them to her and asked for help. Kelly is president of Consumer Credit Counseling Services (CCCS), a non-profit agency which helps people solve their credit problems. Having recently opened an Edmond office, Kelly spent time Monday talking to the University of Central Oklahoma's sorority, Alpha Gamma Delta. "There's nothing wrong with using a credit card," Kelly said. "If you know you can pay for it." However, about 64 percent of the consumers are in over their heads with credit cards, she said. That doesn't mean they're not paying their bills, but should an unexpected expense arise, those consumers would most likely default on their payments. She said about 10 percent of all credit card accounts are now delinquent. Kelly said most of her clients are people with good-paying jobs, like the newly married couple who used an excessive amount of credit to decorate their new home. The husband took on a part-time night job to catch up on the bills, which worked -- until the wife got pregnant and was told by her doctor to quit her job. After the husband got a second part-time job, the couple began quarreling. Kelly said
the story did not end happily, neither for the couple nor their credit rating. Several CCCS clients are college studentz, Kelly said. Getting credit is made easy in college, which creates quite a temptation to spend money they otherwise couldn't spend, she said. Often a student in a financial bind will marry another in the same situation, Kelly said. This only compounds the problem. When using a credit card, the ideal option is to pay the full balance when the bill comes, Kelly said. This will reflect good payment on your credit report and avoid finance charges. "According to a national survey, the average consumer with credit cards spends about two and one-half month's salary each year on finance charges," Kelly said. Kelly gave the example of a consumer who owed a local merchant $2,800 for a refrigerator. The monthly payments were $112 per month. Of that, $49 went to finance charges and five dollars to credit insurance to cover the debt should they die. The remaining $58 went to principal, which meant that each month the consumer paid $112 to reduce the debt by $58. When choosing a card, shop for the lowest interest rates and fees, she said. And when taking out a car loan, avoid payments that are strung out over five or six years, because the payments may outlast the car. Consumers can also invite trouble by having too many credit cards. Kelly said that some loan companies look at the number of credit cards a person holds to determine the potential credit that consumer can be extended. Too much credit po-
tential may scare that loan company away from extending more credit. "Very few people just have one credit card," Kelly said. "They don't stop to think that it's $20 a month for each one. They don't add up the monthly payments, they aren't making a budget and they don't see what they can afford to put out." A budget comparing income with living expenses is crucial for good money management, Kelly said. A consumer should not have to pay more than 20 percent of their income toward credit card payments. V See CREDIT, back page.
Some symptoms of credit card abuse Ownership of more than one credit card and one charge card that must be paid in full each month. Card payments prevent regular payment of rent, utilities or car loans. Cash advances or checks written on one credit card are used to make payments on another. Balances are at the credit limit, making cards unavailable for emergencies. Credit is used to pay for meals with friends who reimburse in cash, which is then regarded as "found" money.
Gay couples get marriage benefits SAN JOSE, Calif. (AP)—Boosted by Lotus Development Corp.'s decision to extend benefits to gay and lesbian couples, Silicon Valley groups said Monday they would press their fledging civil rights movement for homosexual workers. On Friday, Lotus announced it would allow workers with same-sex partners to qualify for benefits offered to employees' spouses, such as medical and dental care, vision and hearing coverage, and bereavement leave. The extension does not apply to unmarried heterosexual couples. The Cambridge, Mass.-based software maker became the first large U.S. company to offer benefits to gay partners. V
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(From left) Kelli Kinnamon, Carla Moore, Michelle Gentry against Northwest Missouri last Saturday. (Photo by Dan and Tim Parham attended the Bronchos season opener Smith)