Think Twice Before Gifting Your 18 Year Old with a Credit Card

Owning a credit card by an 18 year old brings in galore of feelings of freedom, power and affordability, but often the accompanied senses of responsibilities, sensible spending and financial maturity is underestimated and ignored, which results into the existence of several credit card debt relief options and credit counseling services. Thus it is but common for the maximum number of parents to worry about their 18 year old children and their growing wants and demands that undoubtedly include the possession of a personal credit card. The same thought perhaps have moved the lawmakers to make it much harder for young adults of age 18-20 to obtain their own credit cards, according to the Credit Card Act of 2009. Under this act, anyone falling under the age group 18-21 has to meet few extra requirements before being eligible to hold a line of credit. They either have to give evidence of their high monthly and regular income in order to pay off the bills, or must have someone over the age of 21 with sufficient income and credit who will co-sign the clauses and terms with the card holder.

This is where the decision and duty of the parents come into play. The new age teenagers and young adults have a heightened level of awareness and information about all aspects and sources of consumerism, and have gathered knowledge of how to harness and exploit the same for gaining material luxuries and finding hedonist pleasures. What can be a greater and easier way than possessing a credit card in this respect! Thus the parents have to take a strict call on deciding whether it’s the right time to consider gifting a credit card to their otherwise grown up children or do they still need more lesson and wisdom of handling this responsibility. Unless you are blessed with an extraordinarily hard working, sincere and ambitious kid who would not rake his income for credit card, you have the power to acquiesce or deny their request. The fact is that, if your child’s income fails to satisfy the requirements of regular credit card payments, and does not meet the standard that creditors deem as satisfactory for handling the expense, then probably he/she should not have any business owning a credit card, and you too as a parent should understand the situation without being rushed in with parental emotions which can harm your child in the long run. On other hand, credit card should not be denied to a child who has taken care of his/her financial responsibilities and is not dependent on parents’ money; someone who has the credibility to pay off the loans regularly and can take charge of his/her own wants and needs. 

So the parent can exercise their sense of judgment by denying and restricting their undeserving children from owning a credit card if they lacks maturity and financial stability to handle their money wisely.

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The Importance of Being Calm in Economic Turbulences

Someone has said it rightly that anger is man’s worst enemy and if it is the result of stress related to debt or other financial crisis, it takes a deadly shape of destruction for both body, and mind. However we deny or dismiss the present situation of monetary dearth and deficiency, the overwhelming piles of debts are acting as steady creepers which makes a hole in our wallets and a deep chasm of financial insecurity and instability worldwide. The same has given birth to endless debt relief options and debt management plans. Thus losing one’s calm and composure in such a dire and grave economic environment is but obvious for any financially literate person, who is struggling hard to earn, save and to make ends meet for his family and their future. To add to our dismay, we have to keep paying those numerous bills and loans, which make our wealth flow away like waters, and then we face another blow in the form of huge credit card outstanding. Eventually we end up alone with heaps of debts to pay off, followed by continuous and repetitive reminders from creditors and harassments of collection agencies.

All these burdens of economic turbulences make our head spin with fear, insecurity and confusion backed with anxieties for future and our family. These are the times when a debtor faces the biggest challenge of holding his calm. He needs to work out a successful plan with the help of his wisdom, presence of mind and composed sensibility. The first thing that an angry and anxious person loses is his power of straight and rational thinking, which is the most needed weapon to fight off any situational trauma or dislocation.

In times of financial turbulences, a person should have a clear view of conditions and of his own financial state with a practical, realistic yet optimistic mindset. One must ignore all negative thoughts and emotions like anger, distrust, pessimism and loss to overcome the financial depressions. One can get back on track by focusing and looking for solutions together with the well-wishers rather than searching for more problems. Taking control of one’s mind and psyche is the first step towards taking control of one’s debts and money.

Claim Your Dues When You Are In Debt

With debt becoming a household name now, an individual is more likely to become a prey to it than he realizes. No doubt that we gain a certain amount of relaxation from various available debt relief options, debt settlement companies and credit counselors, but only to some extent, as we find ourselves helplessly sweeping in more and more debts with our uncontrolled financial habits and blunders. However, debt has become a vicious circle and thus many a times we find that we too can claim our dues from people who have earlier borrowed from us in the name of friendship or relation. For example there are people who hesitate to file a lawsuit or personal injury claim against an institute or organization which owes him/ her certain amount of money or payment, out of fear and humiliation from neighbors or fellow workers. At times filing a compensation claim, in case of an injury at workspace or outside, or for a faulty piece of hardware, is much easier for us than asking back our own money from a friend or relative who have once borrowed the same in their emergency.  
While being in debt is easier, claiming our justified dues is getting tougher, especially on personal levels, when people feel that asking it back would lead to embarrassments and hidden bitterness. But at times when the burdens of debts are becoming heavier, claiming back one’s dues from all sensible and legible sources is the most logical step towards relieving oneself of some deficiencies.

Without escaping the situation, try to sort out a diplomatic yet wise way out to talk to your friend about your present financial crisis which forced you to ask for the money back from your friend. It is better to be transparent and honest to your borrower than holding disregard and pretence for the same person for not remembering to pay back the favor at time of your need.