It seems ironic that citizens of our nation are facing some of the largest debt in history yet people still continue to sing up and apply for their little piece of plastic power. Credit cards are arguably the root of major debt in America, and now, more than ever, college age students are being approached to buy into this idea. The U.S. Public Interest Research Group did a study and found that 76% of students say credit cards have been attempted to be marketed toward them. Many companies offer "free gifts" for filling out an application. Often most of these cards are partnered with the campuses alumni association. Believe it or not The University of Kansas offers a credit card featuring the signature Jayhawk, yes, in alliance with our school's alumni association.
As debt grows larger so does the cost of college. Many students pay for books and school supplies with plastic, and some even charge tuition on them. At this rate it seems credit cards and its debt have created a never-ending cycle. I suggest that from now on we, as America's future, watch how we spend money (that we may not even have) instead of saying "charge it".
Justin,
That is interesting that you bring this up. We were just discussing the issue in a sociology class of mine. The United States actually has a negative savings level. That is outrageous that our country allows people to go in to such a level of debt. As for student loans, someone mentioned in class, that it is the last thing people opt to pay for. Apparently, if someone dies, their student loans are erased and loved ones are not stuck with the burden of paying the high cost for upper level education.
It is a shame that we spend money so frivolously in this country. I have always thought that credit cards seemed ridiculous. Why buy something if you don't have enough cash to pay for it? If it is such a necessity than you can probably finance it and pay it off in installments (e.g., a house or car). However, when Batya says, "That is outrageous that our country allows people to go in to such a level of debt," I feel that is misdirected. The blame cannot be placed on the system, but rather on the individuals. Just because you can spend more than you have, doesn't mean you have to. There are people out there who do not own credit cards, or manage them responsibly.
It is a shame that we spend money so frivolously in this country. I have always thought that credit cards seemed ridiculous. Why buy something if you don't have enough cash to pay for it? If it is such a necessity than you can probably finance it and pay it off in installments (e.g., a house or car). However, when Batya says, "That is outrageous that our country allows people to go in to such a level of debt," I feel that is misdirected. The blame cannot be placed on the system, but rather on the individuals. Just because you can spend more than you have, doesn't mean you have to. There are people out there who do not own credit cards, or manage them responsibly.
I too, agree with Chris is that the thought of buying something you don't actually have enough money to pay for seems ridiculous. Be it as it may, with inflation as it is, consumer goods just get more and more expensive.
I have two credit cards. One is for emergencies, doctor visits, school payments, and sometimes food. I never see this bill as my parents are kind enough to pay for it. My second credit card is completely in my name and I use it only for large personal expenses, usually plane tickets to Atlanta to see my boyfriend. I decided I wanted a credit card as soon as I got to college to build up a line of good credit. I know how it works, so I haven't has any trouble with it. I spend as little as possible, and never any more than I know I can pay off. It's really NOT that hard. I don't understand how college students, who let's be honest don't have as much to pay for as our parents, get into so much trouble.
I think every young adult should be warned and taught how to correctly use a credit card so this does not continue to happen and hurt their credit.
Last week in the mail I actually received a letter advertising a Jayhawk Visa credit card. It was obviously targeted towards college students, giving that it had a picture of a Jayhawk proudly beaming on the front, and also because the letter named out expenses we could use our card for such as textbooks and KU apparel. These methods of advertising can lure in students to sign up for a credit card when they are not able to pay for what they buy. That could be considered a goal of the companies I'm sure, but this goal comes at the expense of students paying the bills. I do not have a credit card, and probably won't for several years. Sometimes it seems too inticing to purchase something that I don't necessarily need, and that piece of plastic would just make it easier for me to get myself into debt for no reason. Advertisers for these companies are obviously doing their jobs, as is evident by the thousands of people already in debt. I do not want to be one of these people, so the next credit card letter I receive is going straight to the trash.
Last week in the mail I actually received a letter advertising a Jayhawk Visa credit card. It was obviously targeted towards college students, giving that it had a picture of a Jayhawk proudly beaming on the front, and also because the letter named out expenses we could use our card for such as textbooks and KU apparel. These methods of advertising can lure in students to sign up for a credit card when they are not able to pay for what they buy. That could be considered a goal of the companies I'm sure, but this goal comes at the expense of students paying the bills. I do not have a credit card, and probably won't for several years. Sometimes it seems too inticing to purchase something that I don't necessarily need, and that piece of plastic would just make it easier for me to get myself into debt for no reason. Advertisers for these companies are obviously doing their jobs, as is evident by the thousands of people already in debt. I do not want to be one of these people, so the next credit card letter I receive is going straight to the trash.