Credit Cards Mishandling

05:41:45 AM Thursday, October 25, 2007

Horrible Facts about Student Credit Card Deals

Every time we hear another credit horror story, we are paralyzed by fear. We are afraid even to think that such a disaster may happen with us. Perhaps, a special thrill of these stories is their credibility. To end up in debts, and pay off the enormous sums, forget the due dates on your bills, or to fall a victim to some dirty scams...all this turns out to be the worst credit nightmare in your life. Diligent cardholders will obviously shiver at the thought of such misfortunes. As an old proverb says, he that fears every bush must never go a-birding. And what about those students who make their first steps in credit life?

Like it or not, credit card deals are rather risky if you are not aware of those difficulties you may face. As a rule, youngsters happen to make those silly mistakes just because they have no experience in making credit card deals. Another reason is the simplicity of making first credit deals.

When a student arrives on campus, the first thought that comes to his or her mind is to get a first credit card. It must be said that not everyone manages to succeed in their student credit card deals. Although it seems so simple to use your plastic whenever you want, your shopping spree may turn out to be an awful disaster for your financial matters.

"To get a credit card when you are at college is as easy as ABC!" says Vicki Joyce, 29. "It was some kind of addiction. I couldn't imagine my life without a small plastic! I use my credit card for buying clothes or going out with friends." And after hearing that, credit card companies rub their hands. This attitude is exactly what they expect from young cardholders.

And the problem is that in most cases the profits of credit card companies turn out to be heavy debts of numerous students. Sometimes, the consequences may be even worse. There were some cases when youngsters even committed suicide because of heavy debts.

Officials are anxious about the growing number of young debtors. A recent survey of American students has shown striking results. For most respondents, a substantial credit card debt would result in depression and stress. But the most thrilling were the answers of about 20 percent of respondents. They would consider suicide in this situation. Isn't it horrible?

Specialists give the alarm. They insist on the ban against credit-card marketing at college campuses. It must be said that sometimes their efforts do have results, and this activity has been already banned in some states. Still, colleges are not so likely to ban these credit-card campaigns. No wonder, they are getting lump sums as well.

However, credit-industry experts point another reason. The thing is the cooperation between students and credit companies leaves much to be desired. In other words, companies are interested in the ignorance of young credit users.

Actually, it depends on the company. Perhaps, to have savvy clients is much better than to get money out of those students who are up to the ears in debts.

I agree with you that credit card companies abuse youngsters' ignorance about credit card matters. But we can blame only youngsters for their debts. Students are so naive, they often pay no attention to the fine print in credit applications, so it is really easy to trick big money out of them.

This is definitely a terrible statistics. There should be some limitations for young people some security measures. Not all of them have common sense to manage their finances.