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And others -- university survey they suggest credit cards are a more serious threat and college campuses and get this.
How the hall or sexually transmitted diseases -- away -- John behind her.
Education for Smart credit dot com -- -- really.
Really I mean do you believe that's yeah.
Odd that all it -- out of it -- -- It's -- it's hyperbole but it's fun hyperbole I I I I have to think that having been aerial war is a bigger problem and having a little bit of credit card -- I was really -- that's what I say that could.
Now that's just -- that's just one man's opinion what are the what does not don't get me right this is a huge problem and and yet they add to whatever amount of debt -- different.
College student it's gonna carry on top of the one trillion with a T dollars -- it -- that but they're also going to carry -- what this is not good news.
-- the issue that risk that the key.
College student faces is that it's very clear that they did they don't understand how to use plastic and that's the big issue most of them know nothing more to ban.
How -- meaning I swipe that here and I guess -- but they don't really understand important aspects of the account including -- -- OK well let I -- share some of the key findings of -- study because.
It's fascinating keep in mind here that these were business school students for the most part okay this isn't somebody and art class RA.
7% of American college students have credit cards.
Five of six of those students do not know their cards interest rates 75% of them do not know their late payment charges and 70% of them.
Do not know what their overall balance limit these might be.
-- other words they are shopping blind what do you say to that -- I can tell you that I can validate those statistics I -- I personally for the past six years.
Have been a guest lecturer at the University of Georgia and at the Westminster schools here in Atlanta and these are some of the sharper -- in the drawer when it comes to students.
And I can tell you that when I start talking about credit cards and due dates on the laws that protect them and where they are exposed.
An aggressive marketing and credit scoring -- what happens if you -- wrong.
I can tell that -- -- -- have not been taught.
In the world of academia that there is a certain way to manage you think that look this is very important if you look at.
What's going to persist after school one of the things that will persist -- as.
How do you manage yourself properly went up within a broader financial services including specifically -- -- Your credit card.
Well you know.
I think we've seen over the last decade that these companies -- banks whose credit card operators are increasingly targeting this age group for a -- -- reasons one.
Look you wanna name get them early as customers because they're not likely believe they'll stay with you forever and number two they're really -- really stupid with credit and that you'll get to charge them all kinds of fees.
Yeah I know that's exactly right -- and if you look at any of the interviews of Fannie and the banking president's as to why they're having to do US.
They all kind of are saying the same thing but just in a different -- and what they're saying it essentially mess.
That either they're being forced to do this because of revenue -- cause -- legislation or.
They realize that this is the next generation of their customers and they want to -- in.
Quicker and sent her a lot of these banks are actually introducing these prepaid debit -- -- here we go again.
As -- ID card.
So now not only -- -- an ID card but that's also doubling of the prepaid democratic you can load money onto your.
And he's like you used say for example a Visa or MasterCard -- -- They're -- -- -- so you think your credit cards expensive wait to me get -- -- taste of this prepaid debit card and it doesn't build credit I think what that.
Most important facts about these things this is not a way to establish credit history in this country right time.
Yet that's exactly right and look at what we'd like to beat the heck out of credit cards and prepaid debit cards and the problem is is that.
Coolest carrying the torch for these things Suzie -- yeah Dave Ramsey out there slamming credit cards what do we have to be very realistic about these things.
People are going to use credit cards and avoiding them is not a strategy.
Teaching people how to use them properly.
Is this strategy trying to sell people products when you're talking about the stuff that's not a good strategy to be very particular course you're getting your advice from.
-- -- -- time that are trying to sell you something or steer you away for -- something to try to make themselves what that I act.
Like it if you don't know how to use a credit card you are going to pay more -- For the use of that plastic for the next fifty to seven years after you graduate it's that simple -- -- -- your best interest at that parents.
To teach your kids how to do a problem because they're not gonna warrant to stop them -- that.
You know that John what I can't say that a lot of parents don't know how to use the mean -- that's part of the problem this is a big.
Area that Americans have trouble with at managing their own credit managing their own debt.
But I think you probably help people every day when you're here.
One last word if you had to tell parents anything tonight about these prepaid debit cards what would you say.
I -- into the hell holes run as fast as he possibly can.
And it is they -- not going Hawaiian -- it's gonna hear more and more about them billions and billions of dollars are loaded on to them every single year.
State and federal governments are pushing them for tax refunds -- federal government is -- them for Social Security benefits are being marketed to young people middle aged people and older people they have tremendous momentum that just simply is not going to going -- -- San.
If you fall from damage your fault because we talked about them almost every single week about how bad they are -- -- fee structures and how they do nothing to help your credit.
If you have to choose between two slices of plastic she's credit cards ten days out of ten days forget about prepaid debit cards are glad I'm down.
Kind of it's not you let me making money on those prepaid and -- Not -- are not a dime not a dollar.
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