Credit card company solicitation of college students has Pennsylvania officials worried that the lure of easy credit might lead to delinquent payments and financial challenges. Credit in the hands of individuals who might not fully understand the consequences associated with high-interest credit cards.
Another concern of state officials is that few students realize that merely having a credit card could adversely affect their ability to qualify for other forms of consumer debt or student loans. This is because lending institutions take available balances into account when reviewing a loan applicant’s ability to take on more debt. According to this line of thinking, a high available balance today could become a debt with just a swipe of the student’s credit cards.
Allegheny County college students are particularly vulnerable to the effects of unemployment that may cause them to be unable to make even minimum payments each month. For the student who is making minimum payments, the debt owed on credit cards can quickly spiral out of control. This may lead to creditor harassment in the form of collection letters, phone calls from debt collectors and lawsuits by creditors to collect what the money that is owed.
Even if you graduated from college a few years ago, the credit card debt you incurred while in college and the car loans and other consumer debt you now have could create financial challenges for you and your family. A Pittsburgh attorney who is experienced in bankruptcy law the effects of too much credit card debt might be able to provide you with possible solutions.
Source: Wayne Independent, “College students urged to spend wisely,” July 19, 2015