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New Credit Card Laws Seek Solution to Student Credit Card Debt

Marketing to college aged students has been an ethical issue for years for lenders like Bank of America, Wells Fargo and JP Morgan Chase. The government has finally put in their two cents on the issue in the new Credit Card Accountability and Responsibility Act of 2009—and they are putting in some serious restrictions.
Right now, 84% of students have some type of credit card with an average balance of $3,000. With student programs offered by the big lenders, it is easier than ever for students to find themselves needing credit card debt help. On top of student loans, the average student is leaving college with more debt than they know what to do with.

The solution to student credit card debt provided by the new law mostly centers around marketing. The logic is that if cards weren’t made so readily available, students wouldn’t be so inclined to have one. The majority of the laws in the Credit CARD Act went into effect Monday, including the laws about student credit cards. Here are the highlights of the new laws that concern students:

• Issuers cannot offer free items (t-shirts, pizza, etc) to get students to sign up for credit cards on college campuses, at college sponsored events (including sporting events), or within 1,000 feet of the campus.

• People under 21 cannot get a credit card unless they have an adult co-signer or they show proof that they have sufficient income to pay the debt.

Will these new laws provide the credit card debt help that students need? Hopefully. It will still be important for students to practice good spending habits and build credit because, after they turn 21, they will once again be fair game. The credit industry is harsh—especially to young people—and uses naivety to consistently squeeze more money out of average, hard-working Americans. (Wondering how your statements will change? Click here.)

If you’ve gotten into trouble and need a solution to your credit card debt, Chapter 7 bankruptcy in Missouri or Illinois may be the answer you’ve been looking for. A St. Louis Missouri or Belleville Illinois bankruptcy attorney can eliminate your credit card debt and help you get a fresh start to your life. Don’t be afraid to learn more about your options if you are in debt. Request a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to learn more about the action you can take against your debt.

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