Sunday, November 2, 2008

Student Credit Card Debt Increasing

Get a credit card much easier than it was. In the past, people are stable, full-time and not a bad credit history, also tried to create the conditions for credit cards. Today, more than 4 billion credit cards were sent to Americans every year.

Internet search for "easy to get credit card will be pages and pages of sites offering credit cards that are either not deny a request for such treatment or bad credit.

Given how easy it is for people with bad credit to obtain credit cards, it is logical that people without credit history, for example, students can easily obtain credit cards, as well. Even if the current Financial Market is in crisis because banks offer loans on houses of people who can not afford, IT, banks are still on the college student credit cards, despite the fact that most are unemployed or credit history.

2008 Survey, U.S. Public Interest Research Group found that 80% of students reported that receive e-mails from the direct credit card companies, and 22% said they received an average of 4 calls per month, credit card companies.

Not only students are bombarded with offers from credit card via e-mail and telephone, they come on their own campus. For example, the 300 largest universities, in conjunction pocket more than 1 billion U.S. dollars every year to deal with credit card companies for marketing rights on campus. Most of the traffic at the University Club card companies with their students personal information such as phone number, e-mail address and at home. It is not surprising that these agreements are deliberately kept very confidential.

Often, these companies are not entirely honest in the way they used to get students to fill out applications for credit cards. Despite the free food or other properties, is a standard tactic which some believe has deliberately misleading students. Some have for the personal information of students, not to explain what it is. Others wait until the last moment so that the students know that they are filling out an application.

Given the unusually high students exposure to the credit card, it is not surprising that the majority of graduates, at least one credit card. According to Nellie Mae, the largest provider of student loans, 56% of students get their first card at 18 and 91% of students have at least one credit card last year. Under 56% level of four or more cards at the time of their issuance. Nellie Mae also said that the average net student credit cards was 2,169 U.S. dollars in 2005.

May Some people think that students are only with these credit cards for unnecessary purchases, which are irresponsible, which explains why they are so long. Nevertheless, students use their credit cards to pay for things like textbooks, meals, transportation and even school. Survey, U.S. Public Research Group found that 24% of students with credit cards are used to help pay for education.

As prices for almost all of the more than food costs, gas prices, tuition fees, etc., the students discovered that credit cards can help relieve the growing prices. While some student debt in May, in fact the irresponsibly with its credit, there are a number who come round to using credit.

Thus, given the college account for people aged demographic most risky for these companies, credit card, why they insisted on their orientation? Here are a few reasons:

* Students who are considered potential long-term customer and credit card companies interested in building loyalty
* The degree candidates have the potential to be able to repay their debts when they graduate --
* Many parents are willing to take care of the debts accumulated by their children
* They are inexperienced, financially, for the most part, and do not fully understand the consequences of credit card debt

While credit card debt is not optimal for all those who have particularly devastating effects on the students, because:

* Credit card debt can lead to depression, the negative impact on school performance and social relations, there have been cases where students have committed suicide since the seemingly insurmountable credit card debt
* Bad Credit remain with you, bad credit deserves as a cycle it could be that you have a loan for graduate school or a new house / apartment / etc, some students also to the bankruptcy filing
* For students at the very beginning of his adult life, credit card company or collection agency May try to collect from him for ever

All these statistics are totally disappointed in the first place. However, there are several reasons for hope. First, teaching students about the dangers of credit card debt is widely regarded as the most effective way to distinguish it from him. Currently, they simply lack the financial know-how and expertise, but that is changing quickly, that the financial information more accessible, and the dangers of debt were more widespread.

In addition, the number of students entering colleges with ATM or debit cards so that they are increasingly more than the convenience of a credit card, but also allows the students pay only if they are in your account. Warning: Banks create programs that will allow customers who use more than their current account for the high fees.

When it comes to entering college little distasteful dealing with banks and credit card companies, lawmakers and consumer activists are working on measures that restrict the presence of these facilities on the campus. U.S. Public Interest Research Group student chapter, "The Truth About Credit campaign, which encourages schools to adopt six principles to promote responsible marketing map.

These six principles: to replenish the ban on gifts for applications, the company's marketing materials to the school rules of placement, financial education, where access to information, contact the student publication ban on the funding for the student and student groups, departments, as well as impede the view credit card to use students.

In short, while a student credit card debt is rising, a growing awareness of how good, and it seems that the best solution.

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Eliminate Consumer Credit card debt © Layout By Hugo Meira.