Skip to comments.In U.S., young adults increasingly avoid credit cards
Posted on 03/19/2013 11:05:23 AM PDT by TurboZamboniEdited on 03/19/2013 11:07:29 AM PDT by Admin Moderator. [history]
(Excerpt) Read more at twincities.com ...
Good. That means I can max mine out with no intention of ever paying them off. If it’s good enough for uncle hussein, it must be good enough for me. Maybe I can get a bail out.
With Food Stamps and EBT Cards, who needs credit cards?
ummm....maybe, although I suspect many of them are just going with the EBT card instead.
Or they’re jobless and don’t qualify for a card in the first place due and owing $100k in student loans.
When I was a young man I was told that I needed to have and use a credit card to show that I had good “credit”.
When my children reached the age of majority I told them once again, (after lecturing them for years), that if they wanted a credit card then fine get one. But NEVER, EVER use it unless it was for a real emergency. Paying the damn things off was a miserable thing to accomplish. The more you spent, the more you needed to spend.
Now it looks like the kids have figured it out. GOOD for them!
It’s important to have a good credit rating to get a mortgage.
You can’t rent a vehicle without a credit card.
Yup, that's what I think it is. They're also living with Mom and Dad so there's no need to charge up food or furniture.
after all, you’re a child until after age 26 now.
I did, with my debit card.
I believe these are what is more popular with many of the younger generation now for things that many of us use to swipe a card for. Many of them will also give you a small line of credit on it, for a fee.
I paid all mine off a few years ago and tore them up, but since have picked up a $1k card from the store my wife works at.
I get a 10% employee discount because of her, and the store offers shopper specials when you can get an additional 10% off if you use the store card that day. I use it, then walk over to the service desk and pays the bill I just charged right on the spot.
20% is always better than 10%...
Student Loans are the new credit cards.
You can delay the payback for years, if you keep enrolled.
The interest rate is usually lower than a credit card.
The ‘limit’ is higher.
No income check.
Co-signing not usually required.
.....and Barry’s crowd keeps hinting that Uncle Sugar will pay them off for you.
Oh yeah - There is very little relationship between what you can borrow in student loans, and your actual tuition bill. Students are encouraged to pay rent, gas, food bills with the loans.
Now days, if you go into “public service” in a goobermint approved job, you don’t have to pay back the loan, either.
And those loans can be spent on whatever you deem are “living expenses”.
Dave Ramsey must be getting through to them. I wish I had known about him back in the day.
They get subsidized loans for their ‘education’ instead.
You’re right, student loans are the new credit card, well, better than a credit card because you don’t have to pay it back. Work study programs are no longer necessary, and college students no longer work part time to help defray expenses, not even in the summer time. Many college students that I have known since about 2000, have spent the summers traveling the world on student loans, never having had a real job before graduation.
It used to be that it was impossible for a housewife to get a job in retail in the county where I live because all the jobs were filled with college students.
A co-worker’s wife has racked up...
Wait for it...
For what you ask....a PHD in Spanish.
She is enrolled year round, as they use the loans to supplement their income. It was a lean summer for them, a few years ago, when she couldn’t find a class to take. No loan equals less fancy food. (and their food is fancy - they shop at the snooty organic grocery store).
So they are certainly using the loans for living expenses. I once suggested to my co-worker that, perhaps, it would be wise to only spend the loans on tuition. He acted like I had just belted out a crude obscenity in front of a group of nuns. To him, it was absurd. They had to use the loans for living expenses...the alternative would be a part time job on her part, which would delay her degree.
So its a train wreck waiting to happen.
The “big education” cycle is golden in Wash DC.
It’s another conduit of money.
Charge massive tuition, pay admins and profs big salaries, they donate lots to Democrats. And repeat....
Don't be hasty, get a higher limit first.
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