Attempts to limit credit card debt

January 24, 2007

The National Youth Council (NYC) are launching a brand new campaign highlighting the danger of running up huge credit card debt.

They are specifically trying to target the ‘young adult’ age group, telling them to be aware of the interest rates being charged, drawing their attention to high ones and urging them not to use their credit cards as some form of long term credit facility. In other words they wish to re-educate consumers in the hope they might change their financial/spending habits.

NYC’s research figures show that two fifth’s of people in their 20’s own a credit card and are mounting debts with interest rates ranging between 10-20% in some cases.

At these top tiers of interest rates, the cards then become more expensive than a typical personal loan.

NYC are also appealing to financial institutions to perhaps limit their credit cards being issued so easily and would welcome stricter guidelines on eligibility based on age, income, credit history and actually looking at an individual’s ability to pay.