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students being gobbled by credit and debit

students being gobbled by credit and debit

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Published by: Rosa Leroy Levine Gale on Dec 28, 2010
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12/28/2010

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Rosa GaleSept 9, 2010Professor. ThorntonEnglish Tues-Thurs 10:50-12-05Students, Building Their Credit or Digging Credit PittsWith student debt at an all time high and credit card companies ³helping to build thesemountains of debt´ (Silver-Greenberg), many financial experts have continued to study andoverlook problems not only within credit card companies and the common trends they pose onstudents who are bound to be the next victims of becoming new card owners, but they alsoaddress the issues of the stereotypical naïve mentality and un-educated attitudes students mayhave on their overall spending habits. With these continuous studies, experts and governmentofficials are trying to find new solutions to improve not only the debt crisis that so manyindividuals find themselves in, but also to find solutions for the prevention of debt for the futuregenerations to come. Although building credit is a very important main necessity in the societywe live in today, it seems that more and more students are digging themselves into a financialdebit pit before they even graduate; mostly due to credit card companies luring in students to the³get -it-now, pay- for-it-later´ lifestyle expressed in author¶s Christine Dugas¶s article³Generation Y¶s Step Financial Hurdles; Huge Debt, No Savings´. By comparing varioussimilarities within a couple of different articles, the notion and question that has regressed withnegative effects for the student, if, credit is not used wisely is, whether there can in fact be asolution(s) to help eliminate these problems for students and their bad credit debt.
 
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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 financialcredit web. ³It¶s kind of like this magic piece of plastic´ Susan James¶s ³Credit Card BorrowingTightens for the Under-21¶s´. Credit card companies based as sole profit corporations, competeto entrap as many students as possible by offering credit limits that are so beyond the logicalmeans for a public that is generally not well versed financially and most times a public whom areunemployed, as was similarly discussed by author Sliver-Greenberg. Though credit cardcompanies are quick to be criticized by experts and analysts, many credit card companies areeven quicker to respond. According to author Sliver ± Greenberg, Credit card companies arguethat they do in fact provide contracts and rule books that contain all their policies andinformation 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 acard/«when the agreements themselves are unreadable´ (qtd. Silver-Greenberg).Although many experts argue the point that it is the credit card companies fault for manystudents and the immense debt they find themselves; This is primarily due to the fact that theyscheme Students with offering them gifts, and targeting many students on campus or on evenluring them on the internet. Once the student is hooked in and trapped, many credit companiesstart allowing a monthly credit limit that is usually not met with employment (James). It is stillargued by many that it ultimately falls down onto the individual themselves for the situationsthey get themselves into. Credit and or debit, if used wisely and responsibly is not such anegative matter as suggests and is argued in author Susan James¶s article; that if one were in factto be wise on spending and paying of the credit card or any debt, this will no doubt give good or 
 
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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 whogets ultimately get themselves trapped into debt it must be note as argued in author Dugas¶sarticle that students who receive a credit card(s), some having more than 2 or 3 are generallyspeaking 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 thatare 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 sortsof doohickeys that in other words tickle their fancy buttons and with credit cards being asavailable as they are today, and offering all sorts of gifts, it turns out that the wants wins over theneeds. 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 alimitation on the credit level that is available for the student, thus credit card companies cannot³charge more than 20 percent of earnings´(James) and that in order to even apply and receive acredit card the student would need a co signer, that serves as not only a safety net for the creditcard 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 companiesto 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 althoughthe laws may help the student some in ways, it is not entirely beneficial to the student.

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