Teenager in an extreme credit card debt - Essay Example

Teenager in an Extreme Credit Card Debt The 20th and 21st century saw various developments. One of the significantdevelopments has been the rise of technology. Technology has occupied all spheres of human life. One of the significant applications of this technology is on the use of credit card. Credit card has become a common form of business transaction in many countries of the world. On the other hand, teenagers have adopted the use of cards. Credit cards have become part of the teenagers especially those in college campuses.

Hence, the credit card companies make teen their target. There are various issues revolving around teenagers. One of the issues is teenagers and the credit card debt. Credit card debt has been an issue especially on campuses. It is said that most of the students have competence in handling these cards. However, it has been found that some of the students get into debt. The causes of these debts among teenagers have been shown to be a belief about future earnings, debts attitudes and financial knowledge (Jill and Phillip 1).

Most of the teenagers lack proper financial training. Likewise, those with necessary financial training are not willing to change their behavior. As a result, it has been a big problem with most of the teenagers becoming consumers debtor.Most of the teenagers using these cards lack the necessary information. This is because most teens fail to realize the reality of excessive interest rates and fees on these cards. Majority of the students arrive in schools with cards. Most of the teenagers underscore the time it will take to repay the money with interest (Jill and Phillip 1).

The other issue is the reason behind increasing number of teenagers with the cards. The companies make teens their target through promotion. These promotions are meant to lure teenagers to get cards. One of the promotion strategy adopted by the companies is through giving of incentives. Such incentives include giving t-shirts or mugs (Jill and Phillip 1). In addition, the companies remove some of the requirements of getting cards. For example, some companies waive the information requires on the previous cardholder.

Some other companies even offer food items. As a result, most of the teenagers are lured into getting these cards without knowing the consequences. Promotion of cards has also been taken in schools. This has occurred as some of the schools accept these cards as a way of paying tuition. In some institutions, students groups sponsor the card companies. In the end, the group retains some amount for each application the companies receives (Jill and Phillip 1). Moreover, teenagers especially those in schools are offered lower introductory rates by the companies.

The promotion helps the companies to have a high rate of teenagers using their cards.There is also concern on the source of income. Majority of teenagers using these cards relies on parents, relatives, and family friends to top up. Majority of teenagers believes they have ways of covering debts. Most of them believe that they will cover debt after getting well paying jobs after school. However, there has been concern over the debts by teenagers. Some of the teenagers involved in debts reports of stress and financial problems (Jill and Phillip 1).

In conclusion, it is clear credit cards debts have been an issue especially among teenagers in schools.Works CitedJill, Norvilitis and Phillip, Santa Maria. “Credit Card Debt On College Campuses: Causes, Consequences, and Solutions.” College Student Journal 36.3 (2002). < http://eds.b.ebscohost.com/eds/detail/detail?sid=640b0f6d-4455-44cc-9c56-6d385746fdec%40sessionmgr112&vid=0&hid=119&bdata=JnNpdGU9ZWRzLWxpdmU%3d#db=aph&AN=8895984>.