Effects Of Credit Culture On Young People

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Effects of Credit Culture on Young People in the United States Financial credit is omnipresent in American culture. Even on television, consumers see advertisements for several different credit cards offering competitive incentives, free methods to monitor one’s credit score, and companies that help protect an individual from identity theft. Frankly, it has to be a bit intimidating to a young adult. However, it doesn’t stop those same young people from utilizing financial credit early in their life. Doing so is becoming ever easier in our society as well. Young adults can acquire an increasing number of low limit credit cards much easier and earlier in their lives. In a 2011 study, Dwyer, McCloud, and Hodson found that 33.2% of people out of the 3079 surveyed had credit card debt with a mean amount of $953 (2011). These numbers increase when educational debt is added. In our society, having a favorable credit score is a necessity for individuals who desire to eventually own property, start a business, or buy a new car. Our financial system virtually requires individuals to acquire debt to prove that they are a reliable investment for creditors. Credit users must balance their need to borrow with their ability to pay the money back with interest. This is a difficult thing to ask of even the most seasoned spender. To ask the same thing of a young adult can be a life shattering request. There are many benefits to this system for borrowers but it also comes with potential
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