On behalf of Law Offices of Mark M. Kratter, LLC on January 07, 2013
Credit card debt can be a source of stress for Connecticut college students, but sometimes such debt is one of the only ways someone feels they can afford all the pressures of college. With tuition, books, dormitory and other costs, parents may find they are unable to afford everything their child needs. This is where some college students turn to using credit as a way to fund any additional expenses, often times resulting in high credit card debt. One state is eyeing the practice of solicitation by credit companies on college campuses. Legislation is now in the works to halt such practices, potentially opening the doors for other states to do the same.
Credit card companies often enter college campuses and use offers of merchandise or other free goodies to lure young adults into applying. Although using credit can sometimes be a necessary practice, sometimes students will find themselves the victims of high interest rates and quickly become buried under debt they can't pay off. Banning the companies on campuses could prevent them from soliciting students who may not fully understand the interest rates, potentially preventing them from getting into debt.
On the other hand, many college campuses also benefit from credit card companies. The ban would stop colleges from participating with these companies in marketing agreements, as well. In the past, colleges have received huge sums from these companies. In 2010, one college alumni organization made several million dollars from these agreements.
Connecticut students who find themselves in heavy debt after accumulating credit card obligations may gain by considering bankruptcy options. With student loans and additional debt piling up, it may be difficult to begin their adult lives while worrying about how they are going to pay off everything. Although bankruptcy won't discharge most student loan debt, it can help credit card debt and allow young people to begin their careers with one less thing to worry about.
Source: TheDailyJournal.com, "Ban on credit card companies at colleges advances," Carol Comegno, Dec. 24, 2012
