Bank teaches teens wise use of credit

    Americans spend $1.22 for every $1 they earn, according to the Myvesta Foundation. How are people spending more than they earn? Often by overextending their credit cards. That’s why employees of Katahdin Trust Company used the seventh annual National Get Smart About Credit Day on Oct. 15 and throughout the month, as an opportunity to stress the fundamentals of wise credit use.     “Teaching teens and young adults that credit is an important tool for the future may eventually help reverse this trend,” said Vicki Smith, senior vice president of marketing and communications.
    The goal of the American Bankers Association Education Foundation’s Get Smart About Credit program is to raise awareness about the responsible use of credit so teens and young adults can learn how to use credit correctly.
    “We participate in the Get Smart About Credit program to educate young people on how to best use credit so it will help equip them to handle adult financial responsibilities,” said Smith.
    Presentations made throughout October focused on six core activities – the “how-to’s” of credit – including: obtaining credit; managing credit; reading a credit report effectively; understanding the importance of a good credit record; budgeting now to help avoid credit problems later; and keeping personal financial information secure.
    Katahdin Trust employees made presentations to the following high schools throughout their market area: Central Aroostook in Mars Hill, Tori Barber, branch manager; Fort Fairfield, Leanne York and Laura Law, tellers; Greater Houlton Christian Academy, Annette Beaton, vice president, branch manager; Katahdin, Emily Hosford branch manager and Kathy Howes, retail services officer; Presque Isle, Joe Clukey, AVP, retail services officer; and Southern Aroostook in Island Falls, Debbie Schillinger, Oakfield branch manager.
    Katahdin Trust has many tips for students and young adults, such as:
    • Establish a budget and stick to it. This will help you keep your finances in order.
    • Educate yourself on how credit works before you obtain a credit card.
    • Choose the credit card that fits your needs. Interest rates, credit limits, grace periods, annual fees, and terms vary.
    • A credit application is a contract. Make sure you read it — all of it — before you sign it.
    • Don’t spend more than you can afford. A credit card is a loan, not magic money.
    • Don’t pay your bills late. Late payments hurt your credit rating.
    • Know the signs of credit trouble. If you continuously pay the minimum balance, pay late, or use cash-advances to pay daily living expenses, you may be in the danger zone.
    • Call your bank if you have questions.