AMEN!!!!!

The financial crisis is a culmination of everything combined.  Without regulation, it became much easier for lenders to give money to people who couldn't afford it.  While one can argue that it's up to the individual to be fiscally responsible, we must look at the truth and reality of the situation and admit that humans will not always resort to proper reasoning.

I'll give you a great example - when I went to college, I couldn't go anywhere on campus without seeing a table to sign up for a credit card.  The CC companies hired college age kids to man these booths, handed them shirts and other items to give away for free - so long as they received a filled out credit card application in exchange.  There's not one of my peers who I know who hasn't signed up for a credit card on campus for the sole reason of getting the free gift.  Unfortunately, fiscal responsibility isn't the easiest to practice in a college environment, especially if one is living in the dorms without much of an income.  Looking back on this, I think this practice is predatory and unfair to our young people.  

I'm not blaming the financial sector for all my fiscal mistakes, but I do think it's a bit ridiculous that they focus much of their marketing on those who are still learning how to be responsible adults.

As I said, just an example.

FSG: I saw that a lot on the BC campus. So many of these kids are 18 and out and about for the first time. You are right, it is predatory and I didn't like it.  I tried to keep the kids I knew away from that stuff - baring that we had a "discussion" on what kind of job they had (MC Donalds), how much they actually made (minimum wage), how much book cost, tuition, gas for the car or bus fare, etc etc.  I could usually make them see that as it was there wasn't much left over, even if they lived at home, so an additional payment at a high interest rate was not a good idea!

The problem is that many young adults want to be independant and not rely on their parents, so they sign up for a credit card thinking that when they're in a pinch they can use it.  However, with many college students having virtually no experience managing money, it's quite easy for a low limit credit card ($300 or less) to hold a $500 balance or more. With all the fees, many students get swamped in debt quite quickly - even those who do their best to be fiscally responsible.

Does anyone have the website of how OUR politicians voted on the pig with lipstick 'Law'...so that come election time-we may put new blood into congress/senate that LISTENS to the will of the people...

I agree about the predatory practices. They sent that crap to my daughter and she wasn't even IN college! She was just 18! I wanrbed her about such things and explained the dangers of "easy money". She is almost 26 and still doesn't have a credit card. She doesn't want to become mired in high interest debt until she's at least 30!...LOL

Ling..the will of the people is a joke. If some special interest group whines about the passing of a law by the voters, some judge will simply overturn the law. Of course that isn't a judges job, but since when does it matter what the people think?..Which brings me back to the beginning of the first sentence....

moto - does your daughter have any line of credit?  If not, she might run into some major problems down the road if she wants to make a big purchase, such as a home.

You can establish a good line of credit without credit cards.  All you have to do is purchase things smaller than a home and pay your bills on time.  A credit card (one or two ) are fine for emergencies if you pay them off each month.  You build credit without having to pay the high interest most cards charge, The problem is those who live off their credit cards.  I would never even consider using a card to pay for groceries.

I don't know if she does or not. I didn't get my first credit card until I was 26...A year AFTER I bought my second new car. Money may not be as easy to come by over the next decade, but I believe if you have a real income, it will still be available.

Neverleft - if you don't use a credit card, you either need to apply for and obtain a loan (such as a student loan), an auto loan, personal loan, etc., and then as you said, make your payments on time.  I used to think that having your name on utilities bills would help with credit - it doesn't, and in fact, it won't even show up on your credit report.  

moto - I'm a year younger than your daughter.. so I can tell you from my own experiences that things have changed a bit since you were our age.  Today, having some sort of credit history is better than having none.  As far as having actual credit cards - there are many things today which require a credit card number for verification of identity, such as renting a car or getting a hotel room. Just an FYI.