Why do young people have such high levels of credit card debt?
by 
keithold thanks all baggers
ANSWERS: 21
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Why do young people have credit cards with such high maximums?
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Simply because they want things, and they want them quickly. No use scrounging around for cash...just use a credit card for instant gratification...
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It's not a phenomenon that involves young people only. In my opinion, It has to do with the pursuit of instant and easy gratification, thinking that that little piece of plastic is your passport to a world of riches, Many times that is done without thinking ahead of the consequences of uncontrolled spending., i.e. how are you going to get the money to pay back the purcahses plus interests.
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Ramon noodles are addicting.
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It's hard for them to actually identify credit cards with spending what you don't have. The limit becomes an amount to spend, in their minds, instead of the amount you owe.
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credit companies are making it too easy for people to get credit cards.they get them when they are too young to realise what they are spending because it doesnt feel like spending real money.its like you get things for free,then when the bills start rolling in they start to panic.
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They forget the obvious that they have to pay it back
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It's a bit like old tobacco advertisement logic, get them while they are young and they will be hook for life!! Having embraced primitivism as a teen phase, made me conscious to be my own banker, my relations with banks & Visa, don't go further than a visa electron,and 5% percent of my monthly salary left for them to toy with!
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I have noticed that the second you turn 18 you start receiving them, plus every store you walk into wants you to have one of there cards! Its like a kid in a candy store! They see it as free money, when in all actuality we know its not!
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Because they spend more money than they actually earn.
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Because bankers know that people between the ages of 18-25 are the perfect demograph that they need to hit to profit...
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Because they allow it to get out of hand & the credit card companies feed on it like volchers
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Because they have been given access to a tool that they do not yet have the skills to operate responsibly.
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Many young people, especially from middle class and above families, are accostomed to living in a certain degree of comfort that their parents could afford. Once they move out on their own, they find it hard to 'rough it' without the nice things, so they purchase more to get back up to par with the household they left.
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They view it as 'free money' since they don't actually see it physically leaving their hands. I would venture a guess to say that they also haven't been informed of interest rates and only make the very minimum payment at irregular intervals.
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Well you have to take into account, college loans =/ I dont have any credit card debt at all right now, but i only have one loan im paying off. My sister has 4
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It's a combination of predatory lenders and consumer marketing gone wild. Credit card companies target younger customers because they make more money off of them. The interest payments they will only make for years are far more lucrative than the immediate payoff of someone older with better income. Marketing professionals have made it their life's work to determine how to convince people they NEED things that in a normal society are considered luxury goods, not neccessities. And of course you must have it now. The culture of saving to buy something you want gets blindsided by overwhelming advertising convincing you you need this thing. Finally, parents have done a poor job of educating their children on financial reality, and schools very rarely even try.
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look at who’s teaching them, the parents that are in foreclosure, cant even balance a check book, bankruptcy, or stealing for the company they work for?... great roll models.
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Because they are naive.. and old people hoard all the knowledge.
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Not all young people have credit card debt. Do u have ne idea how hard it is 4 some young people 2 even get credit cards? Im only 22 have had no problems with credit and have never even been given a credit card. When I tried 2 get my 1st cell phone when I got out of highschool it supposed 2 b no problem, then the lady came out and said "wow" she had actually never cn credit like mine b4. It was "class z" credit. There was absolutely no record @ all. Needless 2 say I had 2 have a huge down payment. Either way I've gotten loans with co-signers and always paid my bills and I've still yet 2 b approved 4 a credit card. That's crazy right? I got approved 4 a car loan on my own just about 6 days b4 my 21st birthday, and I still can't get approved 4 a credit card. And guess what I don't want 1 now!
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Bad parenting... Plain and simple. There parents never taught them how to save and why debt was evil.
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