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
Your Credit Card Application
Posted in Finance on 05/04/2010 01:03 am by admin
M Rasing asked:
A number of people are afraid of credit cards. They feel that they will only ruin their financial discipline. They are afraid that they will be buried in debt. Their credit rating might be compromised and they will not be able to apply for personal loans and line of credit in the future.
To these people, I say, you only need discipline! All it takes is discipline. If you are an impulsive shopper or buyer, better leave your card at home whenever you go to malls or stores unplanned.
In any case, it is easy to have your application. You just conduct a credit card review and assess your own capacity to pay and your discipline and I don’t think it will be a big problem. What you need to do is to scout for several banks who offer these products.
Once you’ve identified these banks, go to their websites and check out their offer. Take a look at the interest rates, the annual fee, the financial charges and the other benefits that you could get from them.
Mastercard or Visa? If you ask me, it does not really matter. Both mastercard and Visa are accepted worldwide and both are careful in providing security for their cards. Some other platforms are JCB and American Express. There might be more but these are the most popular. It does not really matter which of these cards you choose as long as they can be used by most merchants and that you have the capacity to pay. If you don’t these banks are going to crucify you and hound you till they put a noose on you for not being able to pay.
Your application can be an easy thing to go through. But remember, using a credit card requires discipline on your part.
Francis
A number of people are afraid of credit cards. They feel that they will only ruin their financial discipline. They are afraid that they will be buried in debt. Their credit rating might be compromised and they will not be able to apply for personal loans and line of credit in the future.
To these people, I say, you only need discipline! All it takes is discipline. If you are an impulsive shopper or buyer, better leave your card at home whenever you go to malls or stores unplanned.
In any case, it is easy to have your application. You just conduct a credit card review and assess your own capacity to pay and your discipline and I don’t think it will be a big problem. What you need to do is to scout for several banks who offer these products.
Once you’ve identified these banks, go to their websites and check out their offer. Take a look at the interest rates, the annual fee, the financial charges and the other benefits that you could get from them.
Mastercard or Visa? If you ask me, it does not really matter. Both mastercard and Visa are accepted worldwide and both are careful in providing security for their cards. Some other platforms are JCB and American Express. There might be more but these are the most popular. It does not really matter which of these cards you choose as long as they can be used by most merchants and that you have the capacity to pay. If you don’t these banks are going to crucify you and hound you till they put a noose on you for not being able to pay.
Your application can be an easy thing to go through. But remember, using a credit card requires discipline on your part.
Francis