Should Phoenix parents let students take on credit card debt
On behalf of Ellett Law Offices , P.C. posted in 1. Credit Card Debt on Tuesday, July 24, 2012
College time is just around the corner, and with it thousands of new college freshmen will be off to start their undergraduate careers. During this time, Phoenix parents are faced with a dilemma: sending their newly independent teenagers off with financial independence or keeping them dependent on mom and dad. With such high levels of national credit card debt on record, this can be an understandably difficult decision.
Financial independence comes with a responsibility for credit and debit cards, as well as knowledge of one’s own finances. However, immature spending practices are common among young people who aren’t entirely aware of the consequences of their actions. Extravagant spending during this time can lead to huge financial burdens later when debt is the last thing a young adult starting out in the world needs, especially with the amount of college loan debt that often is incurred these days.
It is has become increasingly more difficult, over time, for young people to get credit or debit cards on their own. For anyone under 21, most cards require co-signers, and parents are the ones who often fill this role. As a result, most young people rely on their parents’ decision to get a card as well as to teach them how to use one smartly.
Often, Phoenix parents are around to pay off their kid’s debts, but poor spending habits picked up now can carry on into these teenagers’ adult lives. Even when educated about smart spending, some young people may still find themselves in difficult financial situations at some point in their adult lives. In those cases, seeking bankruptcy relief with the help of experienced legal counsel could become a valid solution to resolve financial problems that have become insurmountable.
Source: Daily Reporter, “Credit, debit or no card at all? Parents face choice as they prepare to send kids to college,” Dave Carpenter, Associated Press, July 11, 2012
Tags: bankruptcy, credit card debt, debt relief