Students in the Midwest have higher levels of credit card debt than in any other region, according to a study reported by Nellie Mae in 2005.

The same study showed 76 percent of undergraduate students had credit cards. Of those card holders, the average outstanding balance was more than $2,000.

John Grable, associate professor of personal financial planning, said student credit card debt and statistics such as these are a serious issue for some people.

"Unfortunately, about 10 to 20 percent of students are facing significant debt," he said. "Their problem with managing their credit will cost them a lot in fees, interest rates and charges."

Credit card usage affects a person's credit score. Linda Cullinan, vice president of card center marketing at Intrust Bank, said having some credit card debt does not necessarily guarantee a bad credit score.

Having a high level of debt but still making regular payments before they are due can lead to a much better score than missing or making late payments on a low level of debt, she said. In this way, she explained, a student can hurt themselves more by charging five dollars and forgetting to pay it than by accumulating $1,000 that they make payments on regularly.

Grable expressed a similar viewpoint.

"As long as students are able to establish a purchase and repayment schedule, credit can work for them," Grable said.

Credit scores are rated between the numbers 620 and 850. Scoring an 850 is nearly impossible, Grable said, but anything around 700 is considered a solid score. Once a score drops below about 675, it begins to be considered a credit risk, he said. Students can learn more about their credit score at www.myfico.com.

Bad credit can affect many things in a student's future, Cullinan said. Credit ratings are used to determine whether a student could receive future loans for a car or home. They also affect a student's ability to purchase insurance or be hired for certain jobs that require security clearance. A low credit score could make any of these things impossible, Cullinan said.

Bad credit also is an emotional and psychological strain, Grable said. Eryn Wood, junior in secondary education, said she agreed having debt could be stressful.

"Credit cards are necessary," she said. "But I would only use a card for certain purchases and that's it. I don't like having a negative amount on my card at the end of the month."

Despite the risks poor credit pose, Grable said he still recommends that every student have a credit card, even if they rarely use it to make purchases. Cullinan expressed a similar view.

"Credit cards are engrained in today's society," she said. "At some point, students are going to have to learn how to use them. With careful help and a low line of credit, students can learn terminology, consequences and boundaries that will help them keep their credit under control."

Part of the reason credit cards are necessary, Grable said, is that having no credit can have just as many consequences as having bad credit. He said that when a credit report is run, the score will be very low if a student has no credit history to base it on. This low score is not differentiated from a low score caused by overspending and poor management, he said.

"Five dollars or a thousand dollars in charges can act essentially in the same way," Grable said. "As long as the charge is paid off on schedule, good credit is being built."

To avoid debt, Larry Moeder, director of student financial aid recommended seeking grants and scholarships to use for money first.

"There are a lot of financial resources for college students besides their credit card," he said. "Students should be very aggressive in looking for all of the free money out there before relying on debt."

Cullinan and Grable each offered solutions for students who have accumulated debt.

Grable recommended students contact the Consumer Credit Counseling Service of Manhattan. They are a non-profit organization that helps students outline budgets and organize their payment schedules to pay off the debt they have.

Cullinan said students also can approach their bank for help. In most cases, a new management plan or payment schedule can be arranged, she said.

"Most banks want people to succeed," she said. "They will work with someone who raises their hand and says that they need a little bit of help."