Young and inexperienced; living in the red


Many young adults are beginning their independent lives with a heavy debt burden.  Some have student loans as a factor, but this is not always part of the equation.  Young adults have access to lines of credit which can easily lead to “living on borrowed money,” or “living in the red.”  This financial situation is fairly common, and typically the result of a few key factors:  Low income, little to no savings, lack of experience managing money, and ultimately spending beyond means.  Many young people don’t have the maturity, life experience or foresight to fully recognize the long-term impact of financial decisions made today.  Credit card companies make it easy to make big money mistakes.


The CARD Actof 2009 was designed to discourage credit card companies, prohibiting them from certain practices that are unfair, abusive or just plain unethical.  (Free gifts, rates and fees must be more transparent, etc.)  There are special provisions pertaining to minors that must be adhered to before baiting cards out, such as the minor proving to have theability to make payments orotherwise have an adult cosigner.  Although there are provisions, credit card companies continue to find ways around them.  Even in lieu of government reforms like The CARD Act, the lure of easy credit and no interest balance transfers continue to be a temptation for young adults.

Credit cards can be a financial disaster:

  • Credit Cards are tempting and often cause of exaggerated spending.
  • Credit Cards give a false sense of power and can lead to self-destructive behavior.
  • Finances are a top stressor, and reason that many students withdraw from college.
  • Over 20% of 18 and 19-year olds have credit cards.
  • People in the 18 to 24 age bracket spend nearly 30% of their monthly income just on debt repayment.

Zero percent interest too good to be true?  It usually is.  Especially if the borrower is using credit cards to help pay off other debts.  There are fees for transferring, and as little as 30 days to pay the balance, which is not likely to happen.  After that initial grace period at zero percent, there is an interest rate hike.  In a short time, the borrower has inched closer to the credit card limit, sometimes as much as $10,000 per card.  When the credit-card statement arrives, it usually includes an “enticement” to pay the minimum amount, which is a big mistake.  The average Joe owes $3,600 in credit card debt.  Pay only the minimum, and you’ll end up owing almost as much in interest charges as what the loan originally was.  Don’t make a payment and you’ll have annoying debt collectors calling, and sometimes in a very threatening manner.


If things are out of hand, don’t delay the inevitable. Mistakes happen, but now it’s time to take charge of your future.  Bankruptcy is often the cheapest, quickest, and most logical way to pull out of credit card debt.  As a debtor, you still have rights, and are deserving of a second chance.  A free consultation with a Debt Advisors attorney can get you started in the right direction.  Debt Advisors S.C. is a Wisconsin based law firm specializing in Bankruptcy since 1995.  They have helped thousands of people just like you.  After Bankruptcy support, Chapter 7 bankruptcy, Chapter 13 bankruptcy and non-bankruptcy options are available.  Are you ready for your second chance?

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