Credit Card Debt In America Essay

1587 words - 6 pages

Credit card debt is one of this nation’s leading internal problems. When credit was first introduced, and up until around the late 1970’s, the standards for getting a credit card were very high. The bar got lowered and lowered to where, eventually, an 18 year-old college student with almost no income and nothing to base a credit score on previously could obtain a credit card (much like myself). The national credit card debt for families residing in the United States alone is in the trillions (Maxed Out). The average American family has around $9,000 in debt, and pays around $1,3000 a year on interest payments (Maxed Out). Many people have the concern today that these interest rates and fees are skyrocketing; and many do not understand why. Most of these people have to try to avoid harassing collecting agents from different agencies, which takes an emotional and psychological toll on them. While a lot of the newly recognized “risky” people (those with a doubted ability to make sufficient payments) are actually older people who have been customers of certain companies for decades, the credit card companies are actually consciously targeting a different, much more vulnerable group of people: college students. James Scurlock produced a documentary called Maxed Out on this growing problem, in which Senator Jack Reed of (Democrat) of Rhode Island emphasizes the targeting of college students in the Consumer Credit Hearings of 2005
James Scurlock strongly emphasizes this problem throughout the whole documentary. Students, ranging in ages from 18-22 primarily, are young, and naive. They are out from under their parent’s rule and free to make decisions on their own. This means that many are going to take certain steps necessary to make themselves feel they are more adult-like. According to a study done by the Rutger’s University Senate, the average income of a college student is usually going to range from nothing to something little in substantiality; but their future potential for making money is larger than of those who do not attend college (Student financial…). James Scurlock sheds light on the fact that these credit card companies are going to do anything they can to get these kids to sign up. The companies send students a lot of advertisements for credit cards in the mail, and they will even come to college campuses and set up booths where anybody can apply for a credit card; usually using free give-a-ways as a form of bribery.
According to an article by CNNmoney.com, a survey done in 2008 by the U.S. Public Interest Research Group found that 80% of students received direct mail from card companies, and 22% said they received about four phone calls a month, on average, from these companies. This extremely persistent marketing and extreme lack of financial experience and discipline leads many college students into serious debt. Students are also a large target because credit card companies know that they often hold onto their...

Find Another Essay On Credit Card Debt In America

Credit and Debt in Victorian England

1071 words - 4 pages Credit and Debt in Victorian England The majority of Victorian society’s economic dealings can be summed up in two words: credit and debt. These ominous specters, which seemed to haunt Victorian England, were simultaneously able to evoke feelings of delight and doom in their “victims of vanity”. There were several different factors that contributed to the Victorian’s propensity to abuse their credit, and as a result, fall deeply into debt

Yes or no to a credit card?

957 words - 4 pages Numerous college students own a credit card and half are seriously in credit card debt. Credit scores, payments missing, and interest rates can be financially devastating. There are some factors that contribute to college students being in credit card debt like college students actually paying for tuition, school supplies, and textbooks. Jill M. Norvilitis and Philip Santa Maria points out that “it does not matter what type of card individuals

The Convenience of Credit Cards

911 words - 4 pages students apply for a credit card as a way to have extra spending money, without realizing that the money has to be repaid. Students should have an income in order to repay their credit card purchases. Unfortunately, many students do not pay off their cards, and therefore incur large amounts of debt. Student credit cards are more likely to have higher interest rates than others’ cards due to the lower credit scores students usually have. The

Teenagers and their Credit Cards

1185 words - 5 pages Teenagers and their Credit Cards         Availability of credit cards have left young people in debt.  College-age students and low-income consumers, typically deemed bad risks, are easy targets for credit card companies.  Credit card companies should not target college-age students and low-income consumers because of their lack of financial stability.  In 1996, twenty-something consumers owed

why americans should not use credit cards

1121 words - 5 pages advertisements are causing them financial burdens. When Debt Begins The debt of credit cards typically starts at a young age in life, before discipline and life experiences have taken place. Yes, they get you even before you start college. They know when your eighteenth birthday has come. It is a given fact that most credit card debt is accrued right before or during college. I would say definitely before college. Most teenagers want to get what

The social effects of credit cards

823 words - 3 pages charged to the credit card so that it only takes one check. None of it would be possible without the credit card.Nevertheless, there are definite drawbacks to the credit card. The most obvious are the high interest rates. Credit card company's wouldn't stay afloat if they didn't depend on people taking too long to pay their bill. The longer someone takes to pay off their debt, the more they will end up paying. It is very common for people to get

The Things I Like

878 words - 4 pages . Said assets include: new cars, clothes, furniture, and credit card purchases – short-term pleasures. Investment debt, however, is one of the more acceptable types of debt. This kind of debt results from borrowing to fund companies, education, or even homes – assets that will likely increase in value over time. Of course, both types of debts are equally difficult to repay. Debt ranges from mortgage payments, car payments, school loans, income taxes

Credit Cards For The Young A Boon Or A Bane:

961 words - 4 pages session of Congress. Unsuccessfully, they tried to add a clause to the consumer bankruptcy bill that would have prevented the marketing of credit cards to anyone under age 18. In addition, colleges throughout the country have started banning credit card companies from setting up shop on campus and marketing their cards to unsuspecting students, many who are inexperienced with debt management. (Business Week , 48). Some colleges are offering

Credit Card Marketing on College Campuses

584 words - 2 pages students are adults and need to earn credit, credit card companies should not market to college students on campus because they are too naive and this results in graduating with too much debt. Students do not have the education needed to use credit cards responsibly. Nellie Mae (August 2007) states that 93% percent of students would have liked more information on financial management topics before they started school and want financial management

The Downside to Credit Cards

824 words - 4 pages in debt and spend their money in am unjust manner. Works Cited Harding, Nick. "Plastic People: How Credit Cards Changed Our Relationship with Money." Independent.co.uk The Independent, 10 Aug. 2013. Web. 20 November 2013. Jose, Patrick Maysan. "How the Credit Card Has Changed America." Post and Courier.com The Post and Courier, 28 Sept. 2008. Web. 20 November 2013.

Credit Cards: Worth the Risk?

721 words - 3 pages credit cards seem to be an appealing choice for making purchases, or does it? While some advantages are to be made through using credit cards, there are some serious drawbacks to be considered, a large issue being credit card debt. When owning a credit card, often times college students will buy things that they cannot afford. The result of this is increased debt with late fees and massive interest (Clark). Indeed, in 2001 on average nearly 30% of

Similar Essays

Why People End Up In Credit Card Debt

825 words - 3 pages what they want right then and there. This is another reason why people end up in debt. People go out and buy brand new cars or homes because they want it and because they have a credit card, or good credit score they can do that. The average person does not take the time and understand that if they lose their job or some unseen event happens they may not have the money to pay for that car or house. People today act as if their life is in a big

Credit Card Debt Among College Students

2385 words - 10 pages The explosion of credit card use among college students has woven itself into the fabric of campus life ultimately impacting how students interact and begin in the financial industry. As students gain more freedom away from home they often begin to experience various social changes. One area in particular that is cause for concern is the number of students incurring credit card debt. Due to growth in credit card usage and the rise of debt, the

Discussing The Credit Card Debt Crisis

3403 words - 14 pages The Debt Triangle is a legal modern day monopoly in some people’s eyes and since they own banks real estate stocks and etc. this turned America from creditor to a debtor society. They serve us as one stop shops for example you can purchase a home from them get a loan to pay off your home from them apply for a credit card from them invest in their stock and not to mention get home owners, life, and car insurance from these companies. Which is not

College Students Perception In Using Credit Card

798 words - 4 pages Credit cards were not always been made of plastic. There have been tokens made from metal coins, metal plates and celluloid, metal, paper, and now mostly plastic cards. American Express issued their first credit card in 1958. Bank of America issued the Bank Americard (now Visa) bank credit card later in 1958. Presently some college students have credit card already which some use for emergency purposes and while others use it as a substitute for
Ch.12 : A Girl Named Azuma Manami | Study of Factors Affecting Employee Engagement at Kochartech Pvt. Ltd | Air Strike 2018 1080p BluRay x264-SADPANDA