Tag Archives: credit card
Why do credit card companies target college students?
Many credit card companies see the marketing potential in college students. Credit card companies use promotional offers and free gifts like t-shirts, coffee mugs, or CDs to entice students on signing up for their company.
Have you ever asked why? Loyalty is a good reason. Credit card companies are competing to be the first credit card that the student will own. By being their first credit card, it is very likely that even when they graduate from college and enter the corporate world, students will be upgrading their credit cards with the same credit card company.
Students are Big Spenders
Aside from this, college students are great spenders. Lets face it, credit card companies love customers who spend much using their credit cards. The more a person uses his credit card, the better it is for the business. And students are usually prone to over spending or using their credit cards excessively not just for their school necessities but on luxuries as well.
Despite the fact that college students are still in school and most do not have stable jobs to finance them, credit card companies are still doing everything to encourage these students on obtaining a student credit card. Furthermore, credit card companies are encouraging students to use their credit cards as often as they can.
Regardless of whether a student can afford to pay it or not, credit cards are willing to take the risk. Why? Because they can simply charge additional costs on the customers account if they fail to make their payments on time. For instance, credit card companies profit from charging interest rates and penalty fees on their customers. Obviously, customers who fail to pay their balances promptly pay more even if it takes them some time to repay their bill. In the end, the credit card company is still the one who benefits.
Students Need Credit
It is also interesting to know that students will do everything in order to repay their credit card debts. Although, students may fall behind on their payments, they will still find some way to pay off their debts especially as they are about to graduate and find employment. Students may get a part-time job, get a student loan, or borrow from their parents or relatives the money to get off their credit card debts.
Students need to clean up their credit report from any unimpressive records. They need to boost their credit rating so that future employers and creditors can find them worthy of their approval. Thus, credit card companies know that whatever happens, students will find a way to settle their credit card debts sooner or later.
In view of this, it is up to the students on how they will use their student credit cards to their advantage. Credit card companies do not have to be the only ones to profit. A student credit card can provide great help and support during a students college years as long as the student knows how to manage his finances responsibly.
Debt Settlement Programs and Chapter 7 – Part 1 (Page 1 of 2)
When debtors find it difficult to redeem their outstanding dues, they generally try to find various ways and means to repay their debt. However, in many cases, this does not work out properly owing to various reasons, and debtors start thinking in terms of Chapter 7 and filing for bankruptcy. Availing the facilities offered by the statute can solve some of your immediate debt problems, but a certain amount of debt will remain even after discharging Chapter 7, and your credit ratings will carry a “flag” for at least seven years. Needless to say, it becomes almost impossible to avail large credit facilities in the future. Many companies offer debt settlement facilities in the form of debt settlement programs. One of the most common type of debt is credit card debt, in which cases the companies offer credit card debt settlement programs so the debtors can redeem their dues.
Generally, credit debt settlement companies work to provide customized solutions for individuals who have low monthly incomes and delinquency problems. The extent of debt settlement services vary from company to company. However, all companies provide certain features which remain common, and facilitate credit card settlement. A debt settlement company can provide options to redeem, and it is advisable to avail the facilities rather than file for Chapter 7 and bankruptcy. It is important to know exactly what Chapter 7 is, and what issues are associated with engaging in bankruptcy. The knowledge can be useful in deciding whether to file for Chapter 7, or avail debt settlement program to repay.
What does Chapter 7 signify? Chapter 7 of the Title 11 of the United States Code, dealing primarily with the bankruptcy code, fundamentally governs the process of liquidation under the bankruptcy laws of the United States government. Chapter 7 is associated with liquidation and bankruptcy issues. It offers the simplest and quickest way to file for bankruptcy – and the statute is available to all U.S. individuals, corporations, and partnerships. As per the statute, a trustee is appointed by the court to gather and sell all non-exempt property, and use the proceeds availed from the sale to pay off the outstanding dues to the creditors.
According to the law “Exempt property” is the property that the debtor is allowed to keep or retain on his or her own name. The facility is given to the debtors, so it becomes possible to “save” something for the sustenance and livelihood of the debtor’s family, as well as the debtor. The nature and kind of property exempted depends upon the state jurisdiction and its bankruptcy laws. It is advisable to consult a good attorney to have a clear understanding regarding exempted properties. According to the new law, it is mandatory to keep residence in a particular state for certain duration before availing the statute benefits and facilities. The new updation was enforced to prevent a debtor from “moving” to another state offering more generous exemptions, just prior to filing for bankruptcy.