Abstract. Access To Credit Has Increased Dramatically Since

1781 WordsMar 14, 20178 Pages
Abstract Access to credit has increased dramatically since the late 20th century. Changes in technology and banking regulation increased competition and efficiency during this time period. Thus, more Americans had the ability to make purchases on credit. Bankruptcies increased during this same time period as well. It is arguable that increases in bankruptcy were related to increases in credit spending. This paper will exhibit research that supports the claim of increased credit access and bankruptcies in America. The goal of this paper is to examine whether or not personal finance should be taught in schools in the United States; or if it would be more beneficial to allow schools to focus on “core” education and leave personal…show more content…
Once payment in full was received, the consumer took the goods home. Thus, if the consumer did not have the money, they could not purchase the goods. However, during the boom of the late 1990s the number of households with a credit card was significantly higher. In 1998 the number reached 68% (Durkin, 2000). By the late 1990’s, any college kid with the hope of becoming an educated contributor to the workforce could get a credit card with at least a $1000 limit. Personally, my first credit card had a $1000 limit and did not require my parents to co-sign. I got it in 1996 as a freshman in college. Over time, that situation has changed as a result of the “Great Recession.” There are more stringent regulations around young people and access to credit, but does that mean that personal finance education is no longer important? Young adults may have to wait a little longer to get access to credit, but they will eventually have access either through credit cards, car loans, mortgages, or even “rent-to-own” style purchases. Access to Credit During a period leading up to 2005, significant changes were occurring in the credit markets. Two of the most important were the changes in technology for
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