Credit Card Debt Threats

Posted by: Meredith K. | Dec 12,2007


This quote would be amusing, if it wasn’t so startling: “According to Robert Manning, a sociologist at Georgetown University who has been studying credit card debt, card abuse ‘now poses a greater threat than alcohol or sexually transmitted diseases.’”  

Wow.  The answer: don’t have unprotected shopping.  Because really it amounts to the same thing.  Student advocates would like to make it seem like credit card companies are being unfair, but all they’re really doing is signing up students with no willpower whatsoever.  It’s the students' problem for racking up charges that they have no business making.  

At the end of that article, there’s an interesting proposition: “a law should be passed requiring those under the age of 21 to have parental permission or prove he or she has an income.”  That does make perfect sense, and the idea that credit card companies are handing out credit cards to anyone and everyone, regardless of financial standing, does show that credit card companies can be predatory.  No mortgage lender would hand out a mortgage to somebody without an income, the same should go with credit cards.  

What needs to be factored in is the minimum payment of a maxed balance plus interest.  Most student credit cards start with a $500 limit.  Even this is abused quickly by college students.  Even a small $50 credit card bill can be difficult for a student with no income and a small stipend meant for books and other supplies.  Proof of income would be one way to stop students from getting in too deep with credit card problems.  But students have to hold up their end of the bargain and use those cards wisely.  

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