In 1999, 100,000 people under the age of 25 filed bankruptcy. That number has increased significantly since then.
I watched a very interesting and disturbing news story the other night on television. The topic was the Power of Plastic and the College Crowd. Credit card companies have identified College Students as the largest unsaturated market today so BEWARE!
Colleges and universities are allowing merchants to set up booth's on campus or nearby where students are enticed to sign up for a free credit card with no strings attached. Free hats and t-shirts are given as incentives to sign-up. If you don't have a job, NO PROBLEM. They don't care where you get your money from or even if you are employed. It doesn't matter if you have a steady income. A co-signer is not necessary. If you are 18, you're eligible. And every major credit card company is in the game.
So what's the problem? Most of these college kids have no concept of money and no sense of responsibility when it comes to credit. Many are deep into debt by their early 20's and filing bankruptcy before age 25. They thought it was easy money until the bills started rolling in. Many have 10-12 credit cards and are continually given increased credit limits with no income. The schools make money on the debts. They receive royalties and million dollar contracts for providing access to students and their alumni associations.
On the news show, some of these students were interviewed. Their debt was significant and they had nothing to show for it. The money was spent on pizza and concert tickets. Some of these kids weren't so lucky. Their debt had brought them to such a state of hopelessness that they had taken their own lives.
Unfortunately these banks and merchants aren't going away. They are here to stay and to continue to offer our young people as well as everyone else enticing deals to lead us astray from our path of financial freedom and a debt free life.
What is the solution? I'm afraid it's not an easy one and it won't work for everyone. But do take the time to educate yourself in the ways of wise money management. Get rid of your credit cards if you can't control your spending or can't pay your bills off in full each month. If you have children, teach them wise money management and the true purpose of credit. If you are a young adult, stay away from credit cards. Don't give away your future on some pizzas and beer.
Unfortunately, some people will never learn by listening to others. They will have to experience it for themselves. I hope you are not one of them.
About The Author: By Doris Dobkins, money saving expert
Author of "Financial Freedom A-Z Home Study Course" and publisher of the free weekly ezine $mart Money New$ To subscribe, send an email by clicking on this link -->
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or sign up at her web site: CreativeFinances.com
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