Why is it so easy....

[trickrtreat]

Why is it so easy for students to get credit cards? A lot of them don't even have jobs, or decent ones yet. They will already have to deal with student loans when they graduate. I don't think it should be that easy for them. They are seriously taken advantage of.

[berlinlife06]

That´s the key! They are being taken as the people that will get deep in debt! I think they shouldn´t approve those credit cards so fast...

[SageMother]

Originally Posted by trickrtreat

Why is it so easy for students to get credit cards? A lot of them don't even have jobs, or decent ones yet. They will already have to deal with student loans when they graduate. I don't think it should be that easy for them. They are seriously taken advantage of.

Some of what we are seeing is young people being groomed to accept debt so that taking care of that controls some of their decision making in general. Then too, a cashless system can track behaviors, so they are also being groomed to accept that as a natural part of life, instead of considering heavy debt as an unusual state of affairs, and relying on cash as much as possible..

[berlinlife06]

I didn't think of the fact that having credit cards is also a way of controling what people do and what they spend their money in... I'm one of those victims! LOL!

[aquariancore]

I don't understand the financial thinking behind this as credit cards are the number one reason for the rise in college kids declaring bankruptcy.

[SageMother]

Originally Posted by aquariancore

I don't understand the financial thinking behind this as credit cards are the number one reason for the rise in college kids declaring bankruptcy.

It's not necessarily the financial aspect that is the biggest pay off, when you look at the bigger picture. Remember, the laws regarding filing bankruptcy have changed. I just bet that its almost impossible for someone who is 21 to justify having to file bankruptcy now. The fact that they are young and there is a likelihood that their income will go up over the next 5 years will render bankruptcy almost impossible.

[harmony_mom]

Although the new laws have made it harder to declare bankruptcy, that doesn't change the fact that these kids are actually bankrupt. The definition of being bankrupt is that you have more money going out than you have going in. And by the time a college kid without a decent job has run up those credit cards trying to buy all of the comforts thay had a mommy and daddy's house, they are most definitely bankrupt whether they are allowed to file or not. I do agree that young adults are being groomed to accept debt. I am 22 and I'm surrounded by all of these friends of mine that are near my age and they have big houses, nice cars, and luxuries galore. I wonder, how can they afford all this stuff? It's not like they have incredibly high paying jobs. They work 2 and 3 jobs just to pay their debts. It's just generally accepted that we're all working for the credit card companies. But juggling all this stuff catches up with all of this, it's just a matter of time before they drop the ball.

[SageMother]

Many people are bankrupt in reality. Their ability to seek relief is diminished, though. Filing will still require more steps than it used to.

[aquariancore]

These kids are seduced by that feeling of ready money and the the banks seem to raise their limits without second thought.

[SageMother]

Originally Posted by aquariancore

These kids are seduced by that feeling of ready money and the the banks seem to raise their limits without second thought.

I think the ongoing pressure to have more expensive "toys" and higher living standards plays a huge role as well. Between the misguided messages that going to college will lead to higher income, and the commercials depicting luxury as something easily attained, today's traditional college students don't stand a chance!