04:25:47 AM Thursday, July 24, 2008
Student Credit Debt: Students Became More Conscious?
It is, probably, no secret to anyone that many students manage to collect significant credit card debts by the time of their graduation. No wonder. When you are 18, you do not really care for wise financial management and do not bother yourself to reflect for hours, days or even weeks which credit card is the most beneficial for you. Studies, friends, parties and love affairs are what occupies your thoughts.
And a careless attitude to credit card management is sure to result in credit card debt. However, the latest research carried out by Student Monitor is very promising. The study showed that the average credit card balance on student plastics went down by 19%, as compared to last year.
The reasons for a student to get a credit card are quite clear. First of all, a credit card is a convenient payment tool used all over the world. A credit card is a handy tool for a college student to cover some of the monthly expenses, such as rent, utilities, a part of the tuition, books, entertainments and everyday needs. Besides, owing a credit card can be regarded as a sign of being an adult.
Moreover, students can be considered a special credit consumer category, as student credit cards have been designed specifically for them, to fit their lifestyle, interests and needs. Another advantage of getting a credit card when you go to college, is an opportunity to establish a credit history.
Credit companies resort to more and more tricks and promise alluring bonuses for students. Students are a big game for lenders. Well, of course, it is not just cruel intentions that creditors have when attracting potential young clients. They also want to establish firm relationship with young credit consumers to keep them loyal. But now, in the times of credit crisis and economy slowdown, credit providers need "fresh meat" more than ever. Young and inexperienced are more likely to bring profit than sophisticated wise credit card holders.
And in order to encourage young adults to apply for credit cards, credit issuers and banks launch aggressive advertising campaigns. One of the latest surveys shows that nearly 80% of students direct letters from creditors by mail. About 75% of students have looked at the credit marketing table at least once.
Despite the popular belief that students are rather careless about their credit card management, the Senior Vice President of American Bankers Association proclaimed that the greater part of college students make their monthly credit card payments on time and fulfill their commitments associated with credit cards. Some of the students appear to be even more reasonable and wise managing their credit cards than older adults.
But still, according to the survey results, approximately one-fourth of students make late credit card payments, and about 15% exceed their credit limits. These financial missteps result in heavy penalty fees and triggers default rates.
The statistics shows that the amount of young people owning credit cards for students has dramatically decreased to just 35% over the past few years. While the number of young adults with debit cards has gone up to 60% just during this year. This, probably, is the main reason for students' credit card debt decline. But still student credit cards remain pretty popular with young people.
August 12, 2008
Credit consumers, who want to highlight their financial standing, can find credit products that will fit their interests. There are the so-called status-credit cards on the market. Customers can choose silver, gold, platinum or black credit cards. All of them give certain privileges and that very status to their owners.
What is interesting, you do not even need to have excellent or good credit and really high income to get one of the status credit cards. They are available to bad credit owners as well. Let's take a closer look at Gold credit cards. Learn more about features, options and services that Gold credit cards offer.
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August 01, 2008
Shopping is an integral part of our lives. Some people love it; others cannot stand hanging around stores in the search of necessary items. But still, everybody shop. You wonder what can be so irritating about going to a supermarket, a mall or just a grocery store? Aside from an inborn aversion to the process of shopping, there is one thing that can lay a bad trip on even the most avid shopaholic.
Imagine, you come back home after another shopping spree, unpack your purchases and find out that one of them is defected or damaged. This can really bring you down. And not in all cases you will manage to exchange the item or get your money back. At this point, a credit card deal with consumer protection on credit card purchases is a good choice to make.
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July 08, 2008
The Federal Reserve recently proposed to take measures in order to eliminate unfair credit card practices performed by credit card companies and banks. The Fed also suggested toughening rules and regulations for lenders. Hidden credit card fees, unreasonable interest rate hikes, unfair charges, aggressive anti-delinquency policy and other abusive credit card practices are promised to be banned.
This would definitely bring a relief to credit card holders. But how will creditors tolerate such a policy? Banks and credit companies still trying to make up for the losses caused by credit crisis and trying to survive in the conditions of economic recession, are upset with such Fed's moves, to put it mildly. But whose prayers - lender' or borrowers' - will be heard by the Fed?
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