You see it in the news almost nightly, more and more teens are raking up credit card debt, in fact nearly 80% of all graduating college seniors have credit card debit before they even have a job! But this problem starts even before the freshman year of college; in fact the number of high school students who have or use credit cards is rapidly increasing as well.
The problem with teens and credit cards is that most are not mature enough to fully understand what they are getting themselves involved with and their parents believe by cosigning a credit card for them, they will learn financial responsibility. The average teenaged credit card user only makes the minimum monthly payment leading to increased interest payments. The average senior graduating from college has over $4000 in credit card debt.
Don’t worry there is a better solution. Pay cards, such as the rapid! PayCard, are great tools to help teach financial responsibility. With the rapid! PayCard, cardholders have the versatility of a bank debit card without the threat of an overdraft fee. Cardholders are also able to start an interest earning savings account, and are able to transfer funds from there card to any bank account. Best of all cardholders receive all funds loaded onto their card immediately and at no cost to them. Paychecks, student refund checks, and any payment that can be direct deposited can be loaded onto the card.
Before you sign up for the first credit card letter you find in your mailbox, look around and see what alternatives are out there, then make the choice that is best for your student’s needs.
