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TEEN CREDIT CARD DEBT
STATISTICS ARE NOT GOOD NEWS
Teen credit card debt statistics show an alarming dependence
on credit cards within the teenage borrowers of the country.However, it’s not the fault of the teenagers because the
entire population is becoming increasingly dependent on
borrowing money to make all manner of purchases.
There are ways to try and prevent the younger generation starting
the same habit and certainly from getting in to large
amounts of debt. One such solution is the prepaid credit card.
It is virtually impossible to go through life without taking out
some form of credit. Buying house without a mortgage is
very unlikely and even buying a car is difficult without
the use of a car loan. However, if teenagers are already
struggling with debt then they will inevitably have a bad
credit rating when the time comes to make these purchases.
So, should they steer clear of debt until making these purchases
then? Well, no.
Having no credit rating at all makes it just as difficult as having
a bad credit rating. Lenders want to see a credit history
in order to determine whether a person is a viable risk
and if a person hasn’t borrowed money previously they have
no credit rating to speak of. So, the solution has to lie somewhere
in between.
Secured credit cards work in the same way as a credit card except
they are secured against a sum of money that is equal to the credit
limit of the credit card. This money is placed into a bank account
and the account is then frozen so the money cannot be accessed.
This means that should the borrower miss a credit card repayment
then the money can be withdrawn from that bank account to
meet the repayment. Secured credit cards help to build a credit
history and combat teenage credit card debt.
C. L.
CLARK is a
successful publisher of
http://www.first-in-credit-cards.com
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