Not knowing how much you owe, making minimum payments, making cash advances to pay bills and being denied credit are all warning signs that you are in debt.

Linda Simpson, associate professor of consumer affairs, spoke about freedoms from debt Tuesday night in the Sullivan room in the Martin Luther King Jr. University Union.

Simpson said she can tell anyone how to get out of debt, but staying out of debt is the hardest part. She collected mail for the past three days and showed all the credit card offers that she received in the mail.

“This irritates me, this upsets me, a lot of people do not have the power to say no to these offers,” said Simpson. “It is an accomplishment to say, I got myself into debt and I got myself out.”

Simpson said debt is a fixable problem, but it does cause health problems, divorce, and family fights.

“I am a firm believer in credit cards because they offer a lot of perks, I am a smart consumer and the key is I pay my bill off,” said Simpson.

“We use credit because it is convenient, but if you are living high right now, it will slow your retirement down,” said Simpson.

Insurance companies are looking at credit rating. However, according to a press release from the Illinois Department of Insurance, current Illinois law prohibits insurance companies from refusing to issue a new policy or renewing an existing auto or homeowners policy solely due to credit report.

“There are many disadvantages of credit including tying up future income, tempting overspending, costing more money, reducing ultimate buying power and creating a false sense of security,” said Simpson. “By the time you buy a pizza with a credit card, it can end up costing you $100.”

Simpson said by using a credit card, you are not getting ahead, you are getting behind.

“Creditors know the first card you get, is usually the one you stick with for life,” she said.

“Things to look for is how much the annual fee is and what hidden fees cost,” said Simpson. “Transaction fees, cash advance fees, over credit limit fee, and late fees can get people into trouble if they are not aware of them.”

The reasons why people use a credit card today is to meet today’s needs, but needing a new outfit is not an emergency, she said.

She said the biggest thing a college student can do to start getting out of debt is to call and negotiate the interest rate.

“If you are paying over 13 percent on a credit card, it would be wise to call and try to change it to a lower amount, if they don’t you may want to switch credit cards,” she said. “This can knock years off in debt.”

Simpson also advises to pay your payment as soon as possible because interest goes up on a daily basis. She also suggest always paying more than the minimum amount, even just $10 more.

There are ways to stick to a budget, and Simpson suggests saving all of your change and at the end of the month, cashing it in. She also says to write down goals for yourself, stay away from the ATM, leave money at home, and keep money in large bills so you are less likely to spend it.

Simpson says all students should obtain a credit report to make sure there are not any deficiencies on it. She also said to cut down on unnecessary expenses such as candy bars, beer, cigarettes, magazines and getting cards.