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Can Your Freshman Handle The Temptations of Credit?

As your recent high school graduate makes final preparation to start their Freshman year there are many things to consider.  Where to live, what major to declare, Greek or independent.  One of the most important decisions might not even be theirs to decide – using a credit card.  Under the CARD Act of 2009, many students will rely on a co-signer if they plan on having a credit card at their disposal.  Parents considering this option should read the following article.  Because in our economy, it is highly likely that your children will graduate from college not only with student loans, but credit card debt as well.  As the following article points out, students are graduating with twice the amount of credit card debt than when they started.

http://www.foxbusiness.com/personal-finance/2012/08/03/armed-with-plastic-credit-card-rules-for-college-students/ 

The advice for parents?  Set boundaries, go over the fine print, and discuss the consequences.  The consequences…  that’s the big one.  Many young adults don’t realize the negative effect credit card debt can have on them.  And overspending can haunt them for many years after graduation.  Do yourself and your child a favor and talk about this.  The student loan debt will likely be bad enough.  Your child doesn’t need the added burden of credit card debt on top of that.

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Kevin Fallon McCarthy is the McCarthy Law PLC’s managing attorney and an experienced Phoenix debt attorney. Mr. McCarthy has also worked as general counsel for a large corporation. He has corporate counsel experience in human resource matters, general corporate governance, and union class action litigation.