Greater numbers of students will be lured into the Wonderful World of Credit and Debt by telemarketers, Point of Sale People and direct mail than in 2006. Why?
One of the answers is that the Finance companies believe that is a student uses his/her credit card in a manner that racks up the balance and fees that Mom and Dad will dive in and bail them out.
Another is that they will be able to pay the minimum payment on a small credit limit long enough for the Finance companies to gain a decent rate of return on interest, overlimit and service fees before default.
In practical terms the use of a credit card for student purposes need not be when other methods of money movement are available. For more information or commentary please let us know at Bankruptcy-America