September 14, 2009

• Students Fall Prey and Get Help, Pt.1
    Proceed with caution

  Over the past decade, college students have become the target of unscrupulous sales people aggressively seeking to sign students up for credit cards that often come with high interest rates. College students are particularly vulnerable to these credit card marketing strategies because most are strapped for money. The average student struggles on a daily basis trying to make ends meet as they attempt to fund tuition, books, and living expenses. Credit cards in themselves are not a problem and come with some valuable benefits; however, it takes discipline and knowledge on how to manage credit properly. Most college students have had no training or experience in managing these tasks. Many are away from home for the first time and easily fall prey to freebies and fast talking sales people. Before long, they find themselves saddle with debt for years.

  Some of the provisions of the new credit card reform act that was signed into law in May by President Barack Obama took effect in August. Provisions pertaining to the marketing of cards to students and individuals under the age of 21 will become effect in February 2010. These new rules will regulate the methods used and conditions to which lenders will be able to market credit cards to these individuals. Lenders have been scrambling to campuses all over the country in an attempt to secure as many accounts as possible prior to the new rules taking effect.

  Meanwhile, the word is out and students are being warned to proceed with caution when considering signing on the line for any new credit card account. Many universities are developing courses that will become a part of their orientation programs while other educational organizations have also taken notice of the need to offer educational courses aimed at facilitating our nation’s youth on living a healthy financial life. One organization in San Diego, California, the Institute of Consumer Financial Education (ICFE) has moved very quickly to fill this void.

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