| Debt 101- Not Just for College Students |
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Today its not only college students that are being bombarded by credit card marketers but high school students as well have become a main target. Students tend to be encouraged by these offers. Parents that have students 16 and under that wish to obtain a credit card can do so with the parents having ultimate responsibility.
Credit cards are easy to obtain, allowing students to gain access to and use them frequently. With easy access to credit, college students are accumulating credit card debt which has turned into a nationwide concern. Today credit card companies are increasingly starting to target more and more high school students. Research studies have been done and some have shown that patterns of compulsive buying begin in teenage years. With everyday changing trends it’s becoming more evident that students should be taught the basics of credit and personal finances at an earlier age in life to be more prepared for what’s to come in their future. A student financial guide would be a useful tool for students to use to aid them in making smart financial decisions. With all of the talk about credit cards and debt, it would seem that students would be more aware of what they could be getting themselves into. However year after year nothing seems to change and students keep obtaining credit cards and putting themselves at risk of diving into debt. What credit card companies do to attract young consumers is require them to pay only the minimum payment, which is usually only 2 percent of the balance. So if students end up with a large debt, they don’t perceive it as problematic because it is not a large amount of money they need to pay at the end of each billing cycle. However students then end up with debt for a longer period of time wasting money on making interest payments basically. Not to be completely disapproving of credit cards, it is important to establish credit so when the time comes one can furnish their first apartment, buy a house, and purchase a vehicle and so forth. Credit cards are also beneficial for emergency situations in case your car is in immediate repair or a serious illness occurs. Whatever the case, credit card marketers are out there targeting whomever they can so it’s important to know what you could be getting yourself into before applying for a credit card. If you choose to get a credit card, use it wisely. |
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