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Young people may consider consumer credit counseling in face of new credit card law
By Peggy Stillwell on Feb 17th, 2010
New rules are poised to limit younger people's ability to get credit cards with the intent of keeping them out of debt.
Starting next week, people under 21 will have restrictions when it comes to acquiring credit card debt accounts through the Credit Card Accountability, Responsibility and Disclosure Act.
In order to get an account, younger borrowers will have to prove they can afford one or will have to get a co-signer.
In light of the new rules, Money Management International put forward a number of suggestions regarding younger people and credit card debt. First of all, parents should be careful when considering co-signing for a card, as it could end up damaging their credit score if the younger person involved doesn't us it responsibly.
Young people who are considering getting a credit card should also make sure they are educated when it comes to personal finances. Some universities offer classes on personal finances, which can teach students how to manage their money.
Another option that young people may consider is a consumer credit counseling service, which can analyze their personal finances and set up a budget that fits their needs.
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