According to a recent nationwide survey by Sallie Mae, students are relying on credit today more than ever. In 2008, 84% of college students had at least one card. Unfortunately, only about 18% of those students (or their parents) were making regular monthly payments leaving them victim to additional fees and charges.
The Credit Card Act of 2009 is looking to give students and minors a hand in escaping debt with a new set of rules and restrictions placed on the credit issuers. In addition to requiring students to have an adult co-signer or show proof of income before getting a card, students with joint accounts will now need permission from a parent or guardian before they can increase their credit limits.
Another big change is restrictions to limit a student’s ability to actually get a credit card. People under the age of 21 are now protected from pre-screened credit offers and issuers have prohibitions on handing out free food and merchandise on campuses to market a credit card.
While these new laws are a definite step in the right direction, they best way for students to protect themselves from credit debt is still education. In fact, 84% of students from the survey asked for more education when it comes to finances, debt and credit cards.
To learn more about saving yourself from the hassles of debt, check out whatsmyscore.org
And for more details on The Credit Card Act of 2009, click here.