Debt
in its essence can cripple your life, especially if you start accumulating
credit card debt
since college years. Illinois government passed an exclusive bill forbidding credit card marketing campaigns on the territories of college campuses.
“I often receive credit card offers by mail, and I just throw them to trash”, says Scott Davis, a junior student at Rockford College. Scott is sticking to good budgeting behavior which is an excellent choice. He sticks to the strategy of living on what you have without accumulating any
credit card debt
. He thinks it too risky to build up
debt
, especially when one is unemployed, still a college student.
Rockford College and Rock Valley are one of the colleges that forbid credit card advertisement on the campus. However, most of American students live in the environment that only helps them develop harmful financial behaviors that eventually lead to
debt
accumulation. The credit card companies’ practices encourage students to take out
debt
as they study, if you add student loans to pay tuition you eventually have a young graduate with no job and a whole load of
debt
in credit cards and student loans.
Statistics shows that an average graduate in 2008 had up to four thousand dollars in
credit card debt
, i.e. student loans are not included. So, the Illinois government decides to interfere with the process and forbid credit card companies to lure young students into building up
credit card debt
s before they are financially and mentally prepared.
Illinois governor signed a bill that forbids credit card companies to advertise their services on the streets of college campuses, banning them from giving out free gifts as an encouragement for young kids to sign up with a credit card. Moreover, the colleges that still choose to let the credit card companies do the advertising on the territory of the campuses are bound to provide financial literacy courses.
Many economists and politicians applaud the decision and say it is the perfect time to give the young Americans proper financial education in their personal finance sphere. They should know about
debt
, its signs and consequences. Young people should know that whatever
debt
they accumulate, they will eventually have to pay out.
You should also mind that
credit card debt
can be especially harmful for young people without credit history, this may cause other lenders charge them the highest interest rate possible.