Several months back I was watching a segment on this very topic, screened on Australia's Current Affairs program. It featured two young ladies who appeared to be living the life of luxury\'85until the revelation everything was
purchased on credit . And the scary thing was, it was going to take most of their existence to pay back the money they owed the bank!
Debts of up to $70,000 were racked up on cars, fancy rental apartments, hair extensions, clothing, makeup, nails, and nights out on the town. Sure, at face value they were beautiful, confident and glamorous women. But deep down, they were drowning at the hands of their creditors.
I myself have been a victim of the 'freedom' a
credit card can bring. When I was 18 I signed up over the internet for a card with a $2000.00 limit. I was short on cash, paying high rent with a job that netted me peanuts. The feeling of having that much money was exhilarating, and of course the elation of being able to purchase up big at the shops was hard to resist. A short while later, a letter came in the mail offering to increase my
credit limit a further $1,000.00. I signed on the dotted line and two became 3. It was all so easy at the time!
The sad reality was it took me almost 4 years to pay that back, plus interest. All I had to show for it was frivolous junk. I vowed to never use my
credit card unless the only option for a purchase was credit and I had the money to pay it back straight away. I am glad to have learned that lesson and now pride myself on my
money management skills .
To this day, I still receive letters from my bank offering to increase my credit limit. Although I am wise to the dangers of a
credit card , the majority out there are not. What frustrates me in these tough economic times is banks continually loaning
young customers' money who they know
A) Have no experience in money management and
B) Don't have the ability to pay it back.
Yes these customers are entitled to make their own decisions, but should the banks hold an element of responsibility to ensure we don't become a generation owned by them??
Provided by Karen Houlihan,
ARUP
Young Chamber Sub Committee Member