Reducing the Hold of the Underage Credit Card Trap

College
Essay
Miscellaneous
Pages 2 (502 words)
Download 0
Credit card companies have saturated the adult market for credit and have recently expanded their search for new customers. These new customers, young and often underage, are easy prey for credit companies hungry for greater market share and new victims. The credit card companies know that these vulnerable customers are uninformed and easily exploited…

Introduction


With their deep pockets and ability to lobby Congress, regulating the credit card companies is not a realistic option. It's incumbent upon the customer base, the young people, to be well informed and make prudent credit decisions. It's also important for society to mandate that any young person that uses credit be licensed to do so, just as they are licensed to drive. Schools need to offer mandatory credit classes that will teach students how to calculate the cost of credit, as well as the long-term implications of credit card debt. They need to know that credit card purchases have a price, and the price may be hidden in the terms that they have failed to read. They need to recognize a misleading and overly aggressive credit card marketing scam when they see it.
Most of the material could be integrated into existing Math and English courses. Math class could be used to teach how to calculate the long-term cost of a purchase based on the interest rate, as well as how to figure what the minimum monthly payment would be. English class could be a forum for reading and analyzing the fine print. It would need to offer a vocabulary section to discuss the specialized wording that companies use to mask their true intentions. It would be helpful if users understood the terms "pre-payment penalty", "grace period", and "inactivity fee". ...
Download paper
Not exactly what you need?

Related papers

Credit Card Debt: Negative effects among society
Consumers are implicitly told that credit privileges facilitate the increasingly complex choices within their lives. A myriad combination of complex choices arises when individuals seek out distinctive status in a society offering various recreational and professional lifestyles. No doubt credit cards, and the privileges attributed to possessing spending power, are vital social elements defining…
Credit Card Debt
C. Preview: What I'm going to present to you in the next few minutes could save you from a lifetime of misery. I will make you aware of the credit card trap with its fine print and show you how to avoid the pitfalls of its seductive lure.…
Trap
Today's "consumer society" has further strengthened this trap. Since the industrial age, social bonds that were previously an essential part of everyday life have become only secondary concerns amidst the new forms of collective behavior espoused by large commercial institutions, where individuality is no longer valued. Individuals are now replaceable cogs in a wheel, not an essential part of…
Reducing the Hold of the Underage Credit Card Trap
With their deep pockets and ability to lobby Congress, regulating the credit card companies is not a realistic option. It's incumbent upon the customer base, the young people, to be well informed and make prudent credit decisions. It's also important for society to mandate that any young person that uses credit be licensed to do so, just as they are licensed to drive. Schools need to offer…
Credit card debt in the Uk today
The building society branch network was expanded at high pace in the 1980's in the United Kingdom. But facing the recessions in the 1990's the trend declined. Most of the societies rationalized their network in order to cut the cost. The new trend was to give importance to the quality rather than quantity. This in turn gave rise to the trend of targeting high profit customers in order to gain high…
Credit Card Industry and Internet Gambling
However, others consider this risk as trivial concern. The jurisdictional and anonymity concerns characteristic of Internet gambling make online gambling a potentially strong means for money launderers. The small number of prosecuted instances of money laundering linked to Internet gambling is credited to oversight and a lack of solid parameters (Hugel & Kelly 2002: 58). Still, officials form the…
Stop! That Credit Card Could Kill You
After the student tolerates four years of unreasonable professors, calculus, and college life, most will be very anxious to enter the job market. A large credit card debt and poor repayment history will follow the student and complicate their employment chances. With as many as 42% of today's employers doing credit checks on prospective employees, a bad report can have a disastrous effect (Guess…