In Sections 301 to 305 of the new credit card legislation are designed to control the credit card industry’s very aggressive targeting of youth in college, specifically those less than 21 years old. The legislation specifically requires anyone younger than 21 to prove that they can repay the money before being given a credit card or have a parent or guardian promise to pay off their debt if they default.To read more about the new law read are previous blog ” Credit Cardholder’s Bill of Rights Act May Become Law ” .
There’s another blog that asked the question “What do you think makes credit cards at least somewhat like alcohol and not like military service?” The blog host was pointing out that we have always (in recent history) had special laws protecting adults between the ages of 18 years old and 21 years old and that the new law with credit card restrictions for youth was just one of those laws.
I don’t know if I can attempt to make a comparison between military service and credit cards; but I can say that putting a credit card in the hands of a young person is comparable to letting them drink alcohol. Both credit cards and alcohol can be dangerous if not used with extreme moderation and discipline.
Most youth simply don’t have the discipline or sense of moderation to handle alcohol or credit cards responsibility. These new restrictions on credit cards for youth will actually save many from financial disaster by preventing them from racking up tons of high interest debt before they even graduation. Because as it stands now, thousands of youth graduate college with tens of thousands of dollars in credit card debt , forcing many into bankruptcy.