Why raising the age limit on credit cards could help with the debt crisis

September 5, 2007

With the debt crisis being as critical as it currently is, debt management groups are blaming part of the problem on younger credit card applicants. They say that by upping the age limit on credit cards, it will help to stop the younger generation from getting into so much debt. So just why do younger people have such a problem with credit card debt?

Well it seems that it is down to irresponsible spending. Younger people do not have much of a grasp on credit cards and the trouble they can get themselves into. Money has never really been an issue for many people aged from 18-24 and in many cases they are still living with their parents. So they do not have much of an idea of responsible spending and what it involves. In fact in some cases, if they have been denied various things in their life because money has been short, they see credit cards as a way of getting everything they need. They simply do not realise just how big of a problem their irresponsible spending could be.

The current age limit for credit cards is 18, but debt management groups think that it should be increased to 21. This would certainly stop a large portion of bad debt and at 21 years of age you are a lot more mature and able to make better decisions regarding your finances.

One of the most concerning things about younger people and credit card debt is that they do not really seem to care about the debt either. They see it continuing to rise as they spend to their limit and it does not bother them that interest is being added all of the time. They have no idea about what it means for their future or what trouble it could potentially get them into.

So overall upping the age limit to 21 is certainly a good idea. It allows younger people to find out more about credit cards before they actually apply and it will cut out a lot of bad debt too.