Calls To Raise The Legal Minimum Age For Credit Card Applications To 21
Posted in Finance on 08/11/2010 09:06 am by admin
Adam Singleton asked:
Rising levels of bankruptcies amongst young people has prompted calls from debt management specialists Debtmatters to raise the legal minimum age for applying for UK credit cards to 21. By doing this they hope that people will take the issue of being in debt more seriously, and realise the dangers of being in heavy debt so young.
Debtmatters operations director Michael Shirley is worried about the shift towards reliance on funding lifestyles on credit cards. He said: “We are living in a buy now, pay later culture in which many people consider being in debt to be perfectly normal and nothing to worry about. ” Believing that people develop the habit early on, Shirley thinks that delaying the ability to get credit card deals until later in life is a good way of instilling better financial discipline. He points out that reckless spending earlier in life coupled with high interest rates can create a burden of debt that is almost impossible to remove, leading to crippling financial situations that could give rise to bad debt ratings and even bankruptcy.
Shirley added: “Raising the age at which young people can legally access credit cards would provide a short-term solution and allow us time to agree a sustainable long-term solution.” Regarding that long-term solution, Shirley believes that financial management classes educating youngsters about financial independence and the dangers of accumulating debt, should be run in schools, colleges and universities.
Barclaycard, while not going so far as to ridicule Debtmatters call for the raising of the legal age, suggested that cards were vital for helping students through their studies. “Cards can be a lifeline for students managing a tight budget,” said Barclaycard UK cards managing director Amer Sajer. “They can help students make the most of their time at university as well as establishing a good credit record – but only if used sensibly.” he added.
However, ‘using them sensibly’ is the key, agree both Debtmatters and Barclaycard, but unfortunately the evidence suggests that many youngsters don’t. And that starts with the application process were many don’t compare credit cards and the benefits they bring, considering things such as affinity or reward schemes far more important than the interest rate they will have to pay on outstanding balances. Many are also quite happy to run up debt paying huge amounts of interest each month, while only repaying the minimum amount.
Students believe that their debt is only temporary as it will be repaid once they get a job upon graduation, and in many cases that may well be true. However, with the average 2006 graduate leaving university with a debt of
Rising levels of bankruptcies amongst young people has prompted calls from debt management specialists Debtmatters to raise the legal minimum age for applying for UK credit cards to 21. By doing this they hope that people will take the issue of being in debt more seriously, and realise the dangers of being in heavy debt so young.
Debtmatters operations director Michael Shirley is worried about the shift towards reliance on funding lifestyles on credit cards. He said: “We are living in a buy now, pay later culture in which many people consider being in debt to be perfectly normal and nothing to worry about. ” Believing that people develop the habit early on, Shirley thinks that delaying the ability to get credit card deals until later in life is a good way of instilling better financial discipline. He points out that reckless spending earlier in life coupled with high interest rates can create a burden of debt that is almost impossible to remove, leading to crippling financial situations that could give rise to bad debt ratings and even bankruptcy.
Shirley added: “Raising the age at which young people can legally access credit cards would provide a short-term solution and allow us time to agree a sustainable long-term solution.” Regarding that long-term solution, Shirley believes that financial management classes educating youngsters about financial independence and the dangers of accumulating debt, should be run in schools, colleges and universities.
Barclaycard, while not going so far as to ridicule Debtmatters call for the raising of the legal age, suggested that cards were vital for helping students through their studies. “Cards can be a lifeline for students managing a tight budget,” said Barclaycard UK cards managing director Amer Sajer. “They can help students make the most of their time at university as well as establishing a good credit record – but only if used sensibly.” he added.
However, ‘using them sensibly’ is the key, agree both Debtmatters and Barclaycard, but unfortunately the evidence suggests that many youngsters don’t. And that starts with the application process were many don’t compare credit cards and the benefits they bring, considering things such as affinity or reward schemes far more important than the interest rate they will have to pay on outstanding balances. Many are also quite happy to run up debt paying huge amounts of interest each month, while only repaying the minimum amount.
Students believe that their debt is only temporary as it will be repaid once they get a job upon graduation, and in many cases that may well be true. However, with the average 2006 graduate leaving university with a debt of
Hot Credit Card Applications for the Holidays
Posted in Credit on 03/26/2009 01:06 pm by admin
Anne asked:
We used to receive presents on holidays and for birthday from our friends or relatives – always something special and meeting our needs. What if the bank which is your everyday financial partner would present you with something special on the forthcoming holidays?
In comparison with recent years, now banks became more loyal to their customers and are trying to attract the new ones just before the holidays. Such banking giants as Citibank, Chase and Discover have been launching promotion programs for potential customers or rewarding companies for the existing clients.
No wonder, the result is the growing number of credit card applications during the last weeks before the main holiday of the year. Presents from the bank, however, should be treated with a good deal of wisdom, as even the most beneficial special offer can lead to debt. Here are some useful notes on how to use the holiday special bank offers to your advantage.
Be disciplined and do not go into extremes facing so many tempting credit card deals on offer. Choose the one that meets the most of your needs and spending habits. Let us look at the new credit options available on the market this season.
Citibank introduces new rewarding terms with its PremierPass Elite Level MasterCard. Now you will receive 25,000 bonus points instead of only 5-10,000 points before the holiday time. To earn these points one should do nothing special, but spend wisely and pay everything off on time. Thus, you spend $500 with your credit card during 60 days and, according to the terms of this special offer, you will receive 25,000 points as a bonus to redeem for a free ticket!
During the Christmas vacations or a little earlier, many people travel a lot, so frequent flyer credit cards are in great demand. Especially after some banks announced holiday time offers. Under the circumstances, airmiles or cash back credit cards for travel are among the top search queries.
Again Citibank distinguished itself by introducing another teaser offer: AAdvantage Gold or Platinum MasterCard now can provide as many as 40,000 bonus airmiles, if you transfer a certain sum of money on your plastic within 24 months. Chase bank is not lagging behind. They present their consumers with the new terms of United Mileage Plus card, now promising 21,000 bonus miles under the certain conditions.
As you see in these few examples, the bank is ready to provide its customer a fantastic gain in the pre-holiday period. Provided the consumer meets ITS requirements, however. That is why it is important to keep sober when choosing a credit offer with holiday teaser terms.
JEAN
We used to receive presents on holidays and for birthday from our friends or relatives – always something special and meeting our needs. What if the bank which is your everyday financial partner would present you with something special on the forthcoming holidays?
In comparison with recent years, now banks became more loyal to their customers and are trying to attract the new ones just before the holidays. Such banking giants as Citibank, Chase and Discover have been launching promotion programs for potential customers or rewarding companies for the existing clients.
No wonder, the result is the growing number of credit card applications during the last weeks before the main holiday of the year. Presents from the bank, however, should be treated with a good deal of wisdom, as even the most beneficial special offer can lead to debt. Here are some useful notes on how to use the holiday special bank offers to your advantage.
Be disciplined and do not go into extremes facing so many tempting credit card deals on offer. Choose the one that meets the most of your needs and spending habits. Let us look at the new credit options available on the market this season.
Citibank introduces new rewarding terms with its PremierPass Elite Level MasterCard. Now you will receive 25,000 bonus points instead of only 5-10,000 points before the holiday time. To earn these points one should do nothing special, but spend wisely and pay everything off on time. Thus, you spend $500 with your credit card during 60 days and, according to the terms of this special offer, you will receive 25,000 points as a bonus to redeem for a free ticket!
During the Christmas vacations or a little earlier, many people travel a lot, so frequent flyer credit cards are in great demand. Especially after some banks announced holiday time offers. Under the circumstances, airmiles or cash back credit cards for travel are among the top search queries.
Again Citibank distinguished itself by introducing another teaser offer: AAdvantage Gold or Platinum MasterCard now can provide as many as 40,000 bonus airmiles, if you transfer a certain sum of money on your plastic within 24 months. Chase bank is not lagging behind. They present their consumers with the new terms of United Mileage Plus card, now promising 21,000 bonus miles under the certain conditions.
As you see in these few examples, the bank is ready to provide its customer a fantastic gain in the pre-holiday period. Provided the consumer meets ITS requirements, however. That is why it is important to keep sober when choosing a credit offer with holiday teaser terms.
JEAN