College campuses have become the biggest advertising stage for many credit card companies. Many young adults leave home for college for the first time.
They face new levels of responsibility, and experience of a level of freedom they had likely never dreamed of but unfortunately many fall into the trap on this new overwhelming feeling of freedom and get themselves into a lot of trouble even before starting their real professional life.
Credit Card Kiosk
Most colleges allow credit card companies to set up a kiosk on their campus, offering credit cards to all the students walking by. Most of the time such companies attract students by using a cheap incentive to sign up, such as a free teddy bear, chocolate bar, or basketball.
Students who hadn’t even planned on getting a credit card may fill out the application simply to get the incentive, and before you know it, those poor students have fallen into their trap and are charging up purchases and falling into credit card debt.
Everyday more and more students are falling into debt just because of such credit card companies who get those students to sign up who haven’t even though of ways to pay back the extra debt.
Huge Number Of Students are in Debt
Nearly 80% of all students have a credit card, and they don’t only have one card. On average, a student has three credit cards. And the average credit card debt carried by college students is around $2,200, which for many can be devastating. And the pay back amount may double in the mean time as they attempt to pay it off for years and years.
No Job Requirement
The worse part about all of this is that most of these credit card providers don’t require students to have a job or any real steady income. Even if a company has such requirement, it’s just a formality on the application to get the deal to go through. The credit card company may provide a pamphlet illustrating the effects of debt but no student is serious enough about it to read it thoroughly and understand the serious effects it can have.
Educate the Youngsters
Most of the college students don’t have much clue about how credit cards work, it is essential to educate them as nearly all the students are carrying one or more by the time they leave college.
The worse thing is that most of these college students carry their credit card debt well past their college days, and start their professional lives and families with their past debts. This gives them no chance to save up and build their future. The credit card providers, on the other hand, get their profit by taking interest and late fees along with other penalties.
Although it is a fact that credit cards can be very helpful. They allow consumers flexibility and convenience, but without education and responsibility, things can get messy fast.
The idea of ‘free money’ can be very overwhelming for college students often before having a real job and truly understanding the value of money. Parents should educate their children and monitor their spending habits, and if it is possible, co-sign their child to one of their credit cards before college to educate them about credit card debt.
Credit Mistakes Can Haunt You For A Long Time
College time can be a critical time period for you credit score. It is the starting period of one’s financial being and anything that happens now will shape the future.
Credit mistakes that happen now can penetrate into the future, and affect you especially when looking for a mortgage or an auto loan.
Thus in order to secure a good future for yourself, it is extremely necessary to act responsibly and get some education regarding debt and its effects before signing up for a credit card.
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