Pay as You Go System - Essay Example

Pay as You Go Nowadays, we often hear stories of young people who lose out on admission to graduate schools, loans, jobs, apartments, car loans and even up to the point of taking their lives, because of their naive abuse of credit cards and the negative effect of this on their credit scores. Some students are also having credit cards of two or three banks. Are we supposed to blame the credit card companies for this? Ben Estrada, a Consumer Counselor, states that students should have to have a limit in the usage of credit cards and should also have limited access to them. He supports the government legislation that credit card amounts given to college students should be limited. I think Estrada is right. Students at their tender age have a tendency to be impulsive buyers, therefore their credit card usage and access should be limited. However, in my opinion, credit card companies should not be the only ones that are to be blamed upon for causing these problems. However, as a whole, the students themselves, their parents and the legislators should also be held responsible for the same. As the disadvantages of using credit cards weigh more than its advantages, it should be used wisely without abuse. (Can you give some more details? Not required to expand the catchy introduction) Is it clearly state the thesis statement?) And did you clearly state these points in the body paragraph?) (Is the topic sentence here, connect to the body paragraph, and also clearly show in the Introduction-Yes up to a great extent) The ease and comfort of using credit cards is what lures the young and financially inexperienced students into debt. According to Estrada in his article, “Pay as You Go”, it is so easy for people to go into debt and that young people, particularly the students for example, can take out a loan of $3,000.00 to spend on a top-of-the-line laptop. Although they may need the computer, this is too much waste of money. Estrada further states that young people under the age of 21 are not responsible enough to borrow money, wisely. They do not realize that they have to pay this back at a certain time and if they are not able to do so, they will only end up one day with bad credit. They are too inexperienced to understand the long term financial consequences. This becomes a burden on them which I think, is true because, I can relate to this situation and may be for other students too. I remember that when I graduated from high school, I did not know anything about credit cards. When I received my first credit card, I bought a camera, a book, and my computer. I started using it so much that the APR percentage interest became so high that I could not anymore afford to pay my debt. Students who are responsible enough will prevent these credit card companies from tempting them. College students are enough old to know what they are doing, yet some are still not that mature to handle their problems. Kathy Chu from “USA Today” points this out in her article “Easy credit can mean long-term hardship for college students”, when she relates to Mitzi Pool, a freshman at the University of Central Oklahoma, who committed suicide by hanging herself in her dorm due to the piling up of her credit card bills amounting to two thousand dollars. It may be inferred that Pool was so depressed by the outstanding bills and was unable to pay that amount. She sought the “easy” way out because she could have no longer handled the situation. Rather she took her own life out of desperation. Credit card companies will go to great lengths to snag this type of customers. It is actually the fault of students who do not take the first step of making the right decision in spite of being responsible for their actions. Although the credit card companies do not force students to get credit cards but the students have the freedom to choose for it. They should be aware of the things they do and be responsible enough for the consequences of their actions. The credit card companies should not be the only one held responsible for the students abusing their credit card usage. The legislators, the parents, and the students should also be made responsible. It is also observed that the students have less financial experience than older adults because of which they fall into the hands of credit cards marketers. Although the public and private campuses are making it more difficult for credit card companies to access them, this however does not deter the credit card marketers of using any other means to reach the students. Apart from using phone calls, e-mails, and postal mailings, some marketers are even setting up tables close to the campuses offering Piza and handing out other items. Although there are students who refuse getting a credit card, according to Charles Delafluente, in his article “Pushing Colleges to Limit Credit Offers to Students” written in the New York Times, colleges nationwide are under pressure to limit their aggressive marketing of credit cards to students. Dela Fluente affirmed that the US Public Interest Research Group, a consumer-advocacy group, started a campaign urging colleges to restrict the solicitation of students by such companies and that other consumers’ program also want to encourage students to think first if they really need a credit card. It is very important that students be made aware of the consequences of misusing of the credit cards. In his article entitled “Latino students are wary of loans in the Los Angeles Times,” Francisco Vara-Orta wrote that Latino students follow the pay-as-you-go method of paying for schooling rather than taking out loans. Vara-Orta drew inferences from students, professors, researchers, and the loan providers that the lack of knowledge about financial aid, fear of debt, and distrust of lenders are the three most common reasons why the Latino students dislike loans. The percentage of students with credit cards is declining steadily as the parents being alarmed are inoculating their students against credit card use. (Conclusive sentence added) From all theses observations, I could learn a lot on how to manage my finances and how to limit myself from misusing the credit card. I have also learnt that having a credit card means having an obligation to pay my debt. It also made me aware that students have to be cautioned about these credit card marketers and the use of credit cards which can be achieved by the help of parents, advocates, and legislators. The students on the other hand should pay attention to what their parents and experts in this field say so as not to become another statistical specimen for the marketers. Students must learn how to be responsible enough in their actions and seek the guidance of their parents and older adults in case they are unable to handle problems. There is no doubt that having a credit card can easily provide the students with their wants and needs, but when abused, it may also be a burden not only for them but also for their families. Sometimes it may even cost their precious lives. The introduction should be equal to or less than 20% of the total text content. In our essay it seems to be of that size. No need of further expansion needed. It is also very much attractive. The text body includes almost all points. If we add any more thing the total number of pages may exceed 3 pages as desired by your instructor. The last conclusion is also conclusive. It has been edited as per need. There is total harmony in all the paras. If you still feel to edit then please do narrate on what point and where to modify. Thanking you Good Luck IT SEEMS LIKE YOU DIDN’T MAKE ANY CHANGES FROM THE ORIGINAL PAPER. Read More