In an era where plastic money stands to dominate all other forms of funds, children need to be taught and trained on the pros and cons of using credit cards. This has become even more important in an era where youngsters are being targeted by credit card companies as their target audience, citing to increase their sales via them. As a result, this inexperienced generation has fallen prey to the lure of the credit card industry, finding themselves trapped in debt within just a few months. With several instances to support this claim in recent months, it is time to analyze the situation and come out with a solution to prevent careless and incessant use of debt by the younger generation.
Students who have reached the legal age limit are often attracted by credit card companies with the help of the latest gadgets and gizmos like iPods, mobile phones, clothes and other merchandise just to sign up and register themselves for a card. While this is enough to trap them in the credit card net, it is not a rarity to see students with credit cards on campus, something which was quite an uncommon sight a few years back. A sudden and easy access to funds catches students off guard and they spend in a careless and unleashed fashion, getting their hands on anything money can buy. But they often fail to understand that they are spending beyond their means, in a manner by which repayment of the amount is not possible by them. Credit card companies have also been under great scrutiny lately for offering credit lines that are completely out of bounds of students’ limits. This has become an even dangerous phenomenon as many youngsters do not have any jobs to make systematic payments towards their credit card spending. Many credit card companies lure prospective customers by stating that not having a job is not a concern as far as they are concerned, increasing their credit limit by several notches, irrespective of faulty or inconsistent credit records. It is believed that while it is difficult for an unemployed adult to get his hands on a credit card, this rule is twisted for college goers due to their vulnerability and the fact that they hold parental support in financial matters.
Credit card companies also levy a wide variety of charges making complexity a tool to confuse young customers. This is a highly prevalent practice followed by credit card companies as even many adults find it difficult to understand the different types of charges levied by such organizations. Relevant information is not completely disclosed leading to confusion and further complexity of details. Also, an inexperienced credit card user cannot distinguish and understand such hidden activities, that an experienced user can usually sniff out. Many students also tend to opt for easy modes of payments for general requirements by charging their meals to the card. Although it seems like an obvious thing to do, little do they realize that they are just bundling their over dues by the day. The general feeling of optimism does not hold good in this regard as many students spend in an unleashed manner, hoping that things would get better in the future with a job.
Students need to learn about the pros and cons of credit cards first in order to avoid burning their hands later. Remember that while having a credit card may seem like a free ride in its initial stages, there is little or no room for a trial and error method. Your behavior on the credit front may have a huge and unprecedented impact on your job as well, as companies may refuse to select a candidate who lacks good financial foresight and behavior.