Major changes to address debt problems of young... - Other News

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Major changes to address debt problems of young adults

Major changes to address debt problems of young adults

Add to Favorites:
Major changes to address debt problems of young adults

According to recent study conducted by the student loan company Sallie Mae, 82% of college and university students report at least one credit card debt problem every month.

To address this, the government has implemented major changes. The changes were timely, since the research by Sallie Mae also reveals that 84% of all undergraduates already own at least one credit card and to reiterate, 82% of the 84% of undergraduates with credit cards fail to pay debts on the due date.

Today there are stricter guidelines for young adults who want to get credit cards for themselves. This is for them to seriously reconsider the necessity for acquiring a card and realistically assess if they can responsibly manage their accounts once opened.

The major changes include the requirement of at least two adult co-signers to endorse a credit card application for an individual aged 21 and below.

The mandate for colleges, universities, alumni associations, and other organizations to declare existing and future agreements with credit card companies is another change introduced.

This will help shield the financially unstable, vulnerable market of the young adults from false marketing and deceptive claims of credit card companies. The card issuers are able to access alumni and student contact numbers by paying associations, organizations, etc

Marketing inside the campus with the usual perks like food, alcohol, and sponsoring night parties care of the credit card companies will also be prohibited.

Also, students who have joint accounts with their parents will be required to ask for their parents consent (guardians included) whenever they ask their banks for credit limit increase, Dragon says.

These changes, though they do not assure any major shift towards financially responsible management of the young adults, will at least help mitigate the growing problem of debts encountered by people early on their lives.Changes, at the onset, shield incoming young adult credit cardholders.

Students who are already well aware of their debt problems must still make a conscious effort with consistent monthly payments. This will help the student regain opportunities to qualify for mortgages, car loans, and other important financial prospects in the future.

With these major changes being implemented, people are hopeful that it will show positive results in credit card management by the youth.

Add to Favorites:

Related News:

Debt Could Put a Damper on Romance

Posted: August 18, 2017

Does credit health factor into romance? The answer is yes, according to the new Chase Slate 2017 Credit Outlook survey. Carrying a lot of debt could be a deal breaker for some people, with 37% saying that it could make them think less of a ... Continue reading
Voting for Discover it Student Card Design

Posted: August 17, 2017

Discover is asking college students to weigh in on the new design for their Discover it Student Card, so from now until September 21, they can vote on their favorite design on Discover's website. To get the word out, they are running a ... Continue reading
Bank of America and PayPal Strike a Deal

Posted: August 16, 2017

With more and more people interested in making mobile and digital payments, Bank of America and PayPal have inked a new deal paving the way for Bank of America customers to be able to link their credit and debit cards with PayPal and use ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Match Mile For Mile: We’ll match all the Miles you’ve earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
You could turn $150 into $300 with Cashback Match™. Get a dollar-for-dollar match of all the cash back you’ve earned at the end of your first year, automatically.
For Excellent, Good Credit
No Annual Fee. See WebBank/Fingerhut Credit Account Terms.
For Bad Credit