Students enter college, and their mailboxes inevitably flood with enticing offers for credit cards. Many students go wrong when they feel the freedom of college and a little plastic card burning a hole in their pockets.

Not paying back the money owed to credit card companies often leads students into debt.

“Debt could be understood as owing money,” said Joseph Goetz, assistant professor of family financial planning in the housing and consumer economics department.

If not repaid within a certain grace period, the credit card company begins to charge interest for the loan.

“Debt can be both a good and bad thing, and it is helpful to view debt as either ‘good debt’ or ‘bad debt,’” Goetz said. “Debt taken on to make an investment can be good debt, such as a student loan.”

An example of bad debt is money owed on high interest credit cards. Factors leading to this can include overspending, conspicuous consumption, poor management of one’s finances and not having an emergency fund when unforeseen expenditures arise, he said.

He said most people run into problems when they lose track of how money is being spent.

“The key to staying free of high-interest revolving debt is to have a financial plan and to think of money in future as well as present terms,” Goetz said.

For those who are in debt, Goetz said planning can make a difference.

“Create a spending plan and a coordinate it with a debt repayment plan.”