Documente Academic
Documente Profesional
Documente Cultură
Rosa Gale
Sept 9, 2010
Professor. Thornton
With student debt at an all time high and credit card companies ³helping to build these
mountains of debt´ (Silver-Greenberg), many financial experts have continued to study and
overlook problems not only within credit card companies and the common trends they pose on
students who are bound to be the next victims of becoming new card owners, but they also
address the issues of the stereotypical naïve mentality and un-educated attitudes students may
have on their overall spending habits. With these continuous studies, experts and government
officials are trying to find new solutions to improve not only the debt crisis that so many
individuals find themselves in, but also to find solutions for the prevention of debt for the future
generations to come. Although building credit is a very important main necessity in the society
we live in today, it seems that more and more students are digging themselves into a financial
debit pit before they even graduate; mostly due to credit card companies luring in students to the
³get -it-now, pay- for-it-later´ lifestyle expressed in author¶s Christine Dugas¶s article
³Generation Y¶s Step Financial Hurdles; Huge Debt, No Savings´. By comparing various
similarities within a couple of different articles, the notion and question that has regressed with
negative effects for the student, if, credit is not used wisely is, whether there can in fact be a
solution(s) to help eliminate these problems for students and their bad credit debt.
c
³Come one come all, sign up and get free gifts´. ³Need money now, just pay it off later´.
As if at a circus, credit card companies are finding new ways to lure students into their tents of
attractions. With such an array of gifts being offered who wouldn¶t be ensnared in this financial
credit web. ³It¶s kind of like this magic piece of plastic´ Susan James¶s ³Credit Card Borrowing
Tightens for the Under-21¶s´. Credit card companies based as sole profit corporations, compete
to entrap as many students as possible by offering credit limits that are so beyond the logical
means for a public that is generally not well versed financially and most times a public whom are
companies are quick to be criticized by experts and analysts, many credit card companies are
even quicker to respond. According to author Sliver ± Greenberg, Credit card companies argue
that they do in fact provide contracts and rule books that contain all their policies and
information to, so they say, help educate the card owner. But as quoted by Law professor of
Harvard University, Elizabeth Warren, ³how [can] any college student understand the terms of a
Although many experts argue the point that it is the credit card companies fault for many
students and the immense debt they find themselves; This is primarily due to the fact that they
scheme Students with offering them gifts, and targeting many students on campus or on even
luring them on the internet. Once the student is hooked in and trapped, many credit companies
start allowing a monthly credit limit that is usually not met with employment (James). It is still
argued by many that it ultimately falls down onto the individual themselves for the situations
they get themselves into. Credit and or debit, if used wisely and responsibly is not such a
negative matter as suggests and is argued in author Susan James¶s article; that if one were in fact
to be wise on spending and paying of the credit card or any debt, this will no doubt give good or
c
decent credit scores, rather than the torrential debt down pour many today are faced with.
Though author Susan James discusses the matter that it is ultimately down to the individual who
gets ultimately get themselves trapped into debt it must be note as argued in author Dugas¶s
article that students who receive a credit card(s), some having more than 2 or 3 are generally
speaking very optimistic about paying the debt once they¶ve graduated and are settle in their
career, sadly, that is not case. Many students end up having to drop out of school with debts that
are usually unfathomable to believe; This is mainly due to the fact that the new kids of
³Generation Y´ (Dugas) happens to live in a society with neat new gadgets, gizmos and all sorts
of doohickeys that in other words tickle their fancy buttons and with credit cards being as
available as they are today, and offering all sorts of gifts, it turns out that the wants wins over the
needs. Because of such availability this is usually is overlooked by the individual and is one of
the main causes that many students find themselves head over heels in such horrendous debt.
As laws are being made, critiqued and overviewed, the new legislation will put a
limitation on the credit level that is available for the student, thus credit card companies cannot
³charge more than 20 percent of earnings´(James) and that in order to even apply and receive a
credit card the student would need a co signer, that serves as not only a safety net for the credit
card company but supposedly a safety net for the student, to be in the constant shadow of
guidance and responsibility. With that being said although there will still be ways for companies
to reach out to students, (James), and corner them in debt due to the stereotypical mind set of
students primarily shown in author Dugas¶s article in the article ³under 21? No credit for you´
entails points of the new legislations laws against credit card companies but argues that although
the laws may help the student some in ways, it is not entirely beneficial to the student.
c
With all the studies that have been produced to show the causes and effects of not only
debt as a public but the debt a student has to face, we are shown that although many credit card
companies are invasive and the real culprits behind a student¶s, we also have to factor in the
thought process and naïve behavior students take on to get themselves in such a mess. With new
laws and regulations, it will hopefully slow sown and or eliminate most cases but in turn one still
has to look at all the factors including living situation, school tuition and etc which would be the
Work Cited
c
!
"
#$%&$'±
$(()(((
James, Susan. ³Credit Card Borrowing Tightens for Under- 21s´. v
21 Aug. 2009.