Marketing Madness: Many Adults are Paying off College Credit Card Debt Years Later (Guest Post)
Despite the fact that the economy is not doing well and more people than ever before are citing financial burden due in large part to credit card debt, major credit card companies are targeting college students as potential new credit card holders. While many adults are being denied when they fill out credit card applications and loan applications, college students with little to no credit are being issued high balance credit cards on a regular basis. The problem with credit card companies targeting college students for credit cards are numerous; the most crucial problem is the fact that not many college age students have the financial savvy to avoid putting themselves into debt.
Many college students cannot walk through or around campus without being bombarded with credit card offers from multiple credit card companies. These offers are posted on bulletin boards, on windows and on flyers that are sitting on tables and lying around classrooms. Oftentimes, even though a student doesn’t want a credit card, he will end up getting one because companies use the tactic of offering rewards and free gifts to students that fill out an application. One college student from the University of Arkansas ended up more than $2,000 in debt by the beginning of her sophomore year in college all because she wanted to cash in on a free sandwich at a nationally known sub shop. The coupon came in the mail; when she used it to get her free sub she had no idea it was a credit card application until she received her first credit card – with a $2,000 limit – in the mail a few weeks afterward.
Credit card companies know that there is no better way to lure college students into applying for a credit card than by offering them a free gift. The fact of the matter is that it costs very little to market credit cards to college students; free gifts such as a tee shirt, bag or even a sub are often enough to get a student to apply for a card and spend thousands of dollars, which will net the credit card company hundreds, if not thousands of dollars in interest. While it may seem like marketing to college students in a risky decision, credit card companies maintain that college students are often their best cardholders because their parents pay off their debt for them.
Many college students spend years attempting to pay off their debts; some save money on their poor college decisions through the use of a debt settlement program, while others even go as far as filing bankruptcy, which can negatively impact their credit for a very long time. Debt settlement plans are better than bankruptcy, but the best way to maintain a good credit rating is not to get into debt in the first place.
There are plenty of reasons why credit card companies market their cards to college students, but lawmakers are trying to make it harder. The House Financial Services Committee is attempting to make it difficult, if not impossible, for credit card companies to market cards to college students. While so far there has been no decision made on the matter, it remains something that the government is attempting to put a stop to. Despite the fact that none of the proposed legislation floating around Congress has been voted on at this time, some college campuses such as the University of Maryland are taking it upon themselves to restrict credit card marketing to students on campus. However, the key to keeping college students out of debt is through financial education; making them aware of the dangers of debt can only help.
Elizabeth Roque is an in-house writer for <a href=http://www.
Is Spending Bad?
I am currently taking an Econ class for my MBA and came across a topic of discussion: Is all spending bad? I have preached the need to be careful with your finances and to live within your means. However, by no means should one not enjoy their life. We work hard and are entitled to certain luxaries. However, being smart about what you spend money on is important.
Below is a really great video I found on the web. Check it out!
Guest Post! How to Get Debt Relief
It has been some time since I have written. However, that is not to say that my burning passion for financial literacy has gone away! I was fortunate enough to get a guest post for my site. I hope you enjoy it!
Debt relief options that can assist you in eliminating your debt burden
Are you someone who is drowning in an ocean of high interest credit card debt? If answered yes, you must be looking for some debt relief options that can assist you in getting rid of them. The US debt relief industry provides variety of options that a debtor may resort to and this is the best way in which you can help yourself lead a tension free life. Doing something about your debt helps you lead a stress free life in the near future as it is possible for you to assure yourself that you have taken some solid steps to dig yourself out of the debt hole. Have a look at some debt relief options that you may resort to when it comes to debt elimination.
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Debt consolidation program: You can enroll in a debt consolidation program where a debt consultant takes on all the duties of negotiating with your creditors and passing down your payments to the creditors. You can stop making the timely payments to the creditors as they will be henceforth receiving the payments from the debt consolidation program. They will negotiate with your creditors and lower the interest rates so that you can repay the debt in simple and affordable monthly payments. You just have to make a single monthly payment to the program and this will be disbursed off to your creditors making you debt free.
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Credit counseling agencies: There are credit counseling firms that can assist you by offering you effective money management techniques. The credit counselor will assess your present financial situation and thereby craft a frugal budget for you so that you can easily get back a firm grip on your finances by following the personal finance tips and the budget. Only when they see that the debt burden is too high for you to manage, they will enroll you with a DMP so that you can repay your debts through small and affordable monthly payments, just as with a debt consolidation program.
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Debt settlement plan: Another option for the debtors who feel that bankruptcy is the only option left is to settle their debts through a debt settlement plan. A portion of your outstanding balance will be waived off by the creditors and you have to repay an amount that is much less than what you actually owed to your multiple creditors. Though this option hurts your credit score as you’re not repaying the entire amount as per agreement, but there are some more ways in which you can boost your score after a debt settlement.
Taking some solid steps about debt helps you breathe a sigh of relief as you know that you will certainly get out of debt some day. Therefore, follow the above mentioned options so that you can live a debt free life and also boost your score at the same time.
Author’s Bio: Martha Jackson loves to write financial articles and she is a contributory writer associated with the Debt Consolidation Care Community and has written several articles on debt consolidation, debt settlement and get out of debt for various financial websites. She holds her expertise in the Debt industry and has made significant contribution through her various articles. Please see http://www.debtconsolidationcare.com/help.html for more information.
Our Generation’s Struggle
I recently viewed a video that quite frankly scared me. It’s a video by Tim Elmore that discusses the many issues the Y (born in the 80s) and iY (born in the 90s) generations face. I am a member of the Gen Y and I couldn’t believe how much I could relate to what was being discussed. I completely struggle in the real world. We really are not equipped to handle the stuggles that the real world brings. I feel like I graduated college with a false hope of what the world was going to bring me. In reality the world doesn’t really bring me any thing, it’s up to me to bring something to the world.
Because of how difficult the real world is, I think it is that much more important for us to focus on maintaining good financial health. The fact is that the real world is not as nice as high school/college. There is a real sense of competition in the real world and we have to learn to survive and keep up. This is just more reason to really focus on getting your finances in order right away. If you can, stay away from easy money (i.e. loans, credit cards, etc). These easy cash mechanisms just further encourage our tendency to want fast results. If we want to be successful in life, we need to learn to plan for the future. I’m right there with you all. Perhaps together we can make our generation the best generation yet. For your viewing pleasure, here’s the video that quite frankly opened up my eyes to who I am and the struggles that lie ahead of me:
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New Year, New You
Happy 2011! The start of a new year is always a great time to reflect about who you are and who you want to be. You hold the power to transform yourself this year!
Self reflection allows us to understand ourselves better and figure out the root cause of our distress. The truth is that if you can fix the root cause you won’t have any more bad effects in life. Simple law of cause and effect. This practice is especially helpful for figuring out your finances.
Are you starting out the new year distressed about how much money you spent on Christmas shopping? Is it worth racking up that debt just to give gifts to people that may not be really meaningful relationships in your life? Take a moment to write down the 5 most important people in your life. Remember them throughout your new year. These are the people you should buy gifts for. Also, don’t forget that often words of affirmation and appreciation mean more–that’s something that doesn’t cost you a single dollar!
In the end, don’t spend unnecessary money on people that are unnecessary in your life. Transform yourself this New Year. YOU hold the power to make positive changes in your life!
Tips for Back to School Savings
It’s that time of year ag
ain. The summer is winding down and the back to school ads are in full gear. How did the summer go by so quick? Who knows, but what I do know is that back to school is when students start spending a ton of money. I’ve compiled a short list of ways to get some savings during this tough time.
1. Rent textbooks. One of the biggest expenses of college are textbooks. They are incredibly over priced and I never got enough money back when I sold them back to the bookstore. Luckily, you don’t have to buy textbooks anymore. Try www.chegg.com and start renting your textbooks for a quarter of the price of buying!
2. Set a Budget. Get on www.mint.com and set a budget for the year. I promise you won’t regret it. My friends that started doing this are completely addicted to it and so thankful for the savings that they are creating.
3. Look for Sales. Back to school is a huge ad campaign for retailers. If you need new clothes or supplies wait till Labor Day. Items are typically on sale the most during this weekend.
4. Low Cost Furniture. When I was in college, I got all my furniture from Walmart. It lasted me 5 years and I easily re sold everything I had. Don’t bother getting the expensive kind. The low cost stuff is just as good! Check out www.walmart.com for some good deals.
5. Student Discounts. Don’t forget to take advantage of student discounts. Tons of retailers offer discounts to students through out the year. Apple is one such retailer. www.studentbuyingguide.com is a great site that will direct you to the various discounts available.
Back to school can be a stressful time. Take some time to do your research and start the year off right—by saving some money!
Beware of College Credit Cards!
College is starting up soon. Many of you will soon experience freedom for the first time. Unfortunately, that freedom can also equate to some bad decisions. Raking up credit card debt is a common mistake.
I love the video below. Be smart and be proactive!
Beauty of Simplicity
As I get older, I realize more and more how much I don’t like having a lot of things. I’ve moved a lot in the past few years and the more stuff I have, the harder it is to move. Also, stuff (especially useless stuff) costs a lot. I think we as a society often forget to realize that we don’t really need a lot to survive. We’ve become an incredibly materialistic society. This materialism leads to living beyond your means and creating debt.
I have recently become a huge fan of yoga. My yoga practice has taught me the art of letting go. Let go of the past, let go of controlling the future, and let go of the need to rely on anything but yourself. I think it’s also import to let go of the need to have stuff. Less is really more.
Here are 10 steps to living a more simple life:
1. Reuse paper bags, envelopes, newspapers, etc. Newspapers and shredded paper make excellent mulch in the garden. The mulch will break down over a period of time and add humus to the soil (Just don’t use colored flyers).
2. Have a Buy Nothing Day.
3. Carve some space for ‘mindful living’ so that you have time for ‘beingness’ rather than ‘doingness.’
4. Find friends who know the glass is half-full or in other words, find friends who share the same value system as you do.
5. Grow your own food or buy as much as possible from local growers.
6. Use non-toxic products such as borax, vinegar, baking soda, lemon, and salt in your home, yard, and garden.
7. Before you buy something, write the item down on a note and if you still want it after a month, purchase it then.
8. Decide what is really working in your life and let go of that which no longer serves you.
9. Surround yourself with what you really need and love.
10. Go Organic. Organic gardening is not only about the avoidance of chemicals, but in the larger picture, it is organic living using Nature’s laws.
I have realized that things that I really need and value don’t cost anything. Being around my friends and family and sharing laughs and good times with them is what brings me true joy. Don’t let the clutter of things get in the way of valuing and appreciating the true joys in life. Appreciate all that you have and realize that you don’t need much to live a meaningful and enjoyable life.
Vacation For Less
Summer is here and if you’re anything like me, you’ve got the travel bug. Just because you’re in college or strapped for cash doesn’t mean you can’t enjoy a vacation. Here’s a video I found that has some good tips on how to travel for less.
Also, if you’re student, check out Student Universe.
Dad’s Two Cents
Today is Father’s Day. It’s a day to celebrate our dad and all that he does for us. I’d like to take some time to reflect on some of the key things that my dad taught me about life.
Like my mom , my dad did not come from a lot of money. Despite that, he was able to obtain an undergraduate and graduate degree. He learned early on that with enough hard work and a good attitude, anything was possible. My dad is an instrumental influence in my life. I would like to share some of his words of wisdom.
1. Work Hard: My dad’s philosophy on life was to always work hard for what you want. He immigrated to America with $7 in his pocket. His first job here was washing dishes at a hospital and 15 years later he became a Director at that same hospital. He always told me that if you work hard and stay focused, amazing things will happen.
2. Have Patience: I think one of the best qualities of successful people is their ability to remain patient when things aren’t going well. It’s so easy to give up, but to keep faith and patience is really hard. My dad has always preached the importance of remaining calm and patient. When things aren’t going your way, don’t sweat it because it will eventually pass.
3. No One is Born Big: This is my dad’s favorite saying. He strongly believes in working your way up to success. Success doesn’t come easily and no one gets what they want right away. It’s also a testament to keep learning through out your life.
4. It’s Just Money: My dad made it a point to not make money the most important thing in his life. In the end, if you work hard enough, he felt that you would always make enough money. He always stresses the importance of people and the small joys in life. You can always make more money, but you can’t always make more time for the people and memories that really make an impact on your life.
5. Self-Confidence: My dad is a big proponent in loving yourself for who you are and who you want to be. He always says that if you don’t believe in yourself then why should anyone else. Even if you find yourself in a tough situation, realize your mistakes, learn from them and move on.
Dads are really important in life. They serve as a steady rock and life long teachers to their kids. Thank you to all those dads out there that understand and appreciate their important role in society.
