Jeff's Blog

Credit Card Companies vs. College Student - Who is responsible for the financial future of college students?

DO COLLEGE STUDENTS IGNORE THE REALITY OF DEBT AND VIEW THEIR COLLEGE CREDIT CARD SPENDING AS JUST PART OF THE EXPERIENCE? 

An online poll held by the National Association of Retail Collection Attorneys (NARCA), reveals what students think about their credit card spending during their college years.  NARCA’s findings show that a quarter of college students think it is realistic that they have to run up credit card debt in order to survive in college.  Credit card spending is characterized as  “enjoying the moment”.

“Our poll results show that too many young people are living for the moment and are not preparing for their financial future,” said Robert Markoff, president of NARCA. 

I believe this is  a true statement.  Should credit card companies share part of the blame?  Do credit card companies make it too easy for college students to apply and obtain credit cards?   Or should we solely blame college students for not taking responsibility for their own financial future?

Personally, I think credit card companies should put stricter boundaries on college students applying for credit cards.  The likelihood of this occurring is very small.  Credit card companies make money off of college students and isn’t that what it is all about?  Credit card companies are able to charge higher interest rates and higher annual payments to college students with very little or no credit history and a small income as compared to a middle-aged business man with good credit history and a high earned income.  So OF COURSE, credit card companies like to “hand out” credit cards to college students.

Why do you think so many credit card companies set up shop on college campuses?

Yes, that’s right.  Credit card companies will pay universities big money to set up shop.  Some universities have done the right thing by refusing access to their campuses.  Credit card companies will lure college students into applying for a credit card by sitting out on campus giving away “free stuff” in exchange for completing an application.  Since college students love free stuff, they apply.  And….once that credit card comes in the mail, it is just too hard for a poor college student to turn away. 

I blame today’s society, for 2 main reasons.  First, if you think high school is a fashion show, then what is college?  Everyone is in competition.  We are slaves to the material things in life, such as clothes etc. Not to mention, all the parties a college student might throw to earn the respect and praise of their peers.  Being out of mom and dad’s house for the first time, it is easy for college students to take advantage of their “new free living lifestyle”.

College students, and adults for that matter, think they need to appear as if they “have money” in order to be respected.  We often lose sight of what is really important in life.  Credit card companies take advantage of this mentality.  They go after college students with a vengeance.  They want the college student to become “addicted” to credit, in the same way the drug dealer wants his/her customers to become addicted to the drug. 

Secondly, I blame the education or should I say “lack” of education of a young adult’s financial future.  Is there a reason high schools do not educate students of the reality of their future credit history?  Maybe high schools should start making a class like this mandatory.  Maybe, just maybe, if we educate our young minds about how important it is in today’s world not to get in over our heads with debt, things might change. 

Just food for thought.

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