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By Taylor Riddle
A few months ago, Taylor Riddle was at the top of his game as one of the youngest delegates at the Democratic Convention. He already had an impressive resume, including a stint as a Congressional Page in Washington, D.C. In Denver big names in politics like Representative John Lewis knew him by name. Now Taylor finds himself as one of many young Americans caught unexpectedly in the middle of the financial crisis.
Let me cut to the chase. I may have to drop out of college because two thousand dollars is standing between me and my education. I never expected to face this dilemma. The credit freeze that everyone keeps talking about could freeze me out of finishing my freshman year at the University of Arkansas.
Lots of people are worried about how the economic crisis will affect youth in the future. But young people are already living out the effects of the downturn, right now. In this story, three young women describe how the shrinking economy is reshaping their personal and professional identities. You’ll hear first from Genai Powers.
Genai Powers:
When getting ready to go to college my mother told me not to sign up for any credit cards offers unless I talked to her first. College students are constantly targeted by credit card companies at college fairs, pre-approved cards, freebies and more. But not so much anymore thanks to the new credit card from reform. Credit Card Accountability, Responsibility and Disclosure Act of 2009, also known as the Credit CARD Act, will go into effect on Feb. 22, 2010. This is meant to help protect people from credit card companies hidden fees, change in APR (interest), and fine print. When proposing the bill President Obama said, "Americans know that they have a responsibility to live within their means and pay what they owe but they also have a right to not get ripped off by the sudden rate hikes, unfair penalties and hidden fees that have become all too common in our credit card industry."
The Credit CARD Act has many aspects to help Americans, and is going to attempt to help the Under 21year olds who often get swept up in the instant gratification of credit. The Act will affect Under 21 year olds in several ways:
Basically,
• Credit for young consumers: Ban credit cards for people under 21 unless they have a co-signer or proof that they have income to pay them back, Bans pre-screening and pre approved credit cards, and the Under 21 year old has get permission from co-signer to increase credit limits on joint accounts
• College marketing: Colleges have to disclose the student information they give credit card information; Credit card issuers are required to file annual reports with the Federal Reserve Board detailing the terms and conditions of all business, marketing and promotional deals with colleges and universities, including the amount of any payments made to the school; Recommend colleges universities and alumni associations to not allow credit card companies to promote on campus or near campus (now near campus is defined as 1,000 miles from the border of the campus)
• No more freebies or promotional gifts to get young
More details
(VIA: Creditcard.com)
College students have already reacted. Some student like Cierra Jackson, a 21-year-old public relations major at Florida A & M University, says "I think it's a good law. Most people get credit cards and are in debt before they finish their first year in college." While others are strongly opposed like Todd VanDuzer, 19, a business major at Arizona State University (ASU) in Tempe. He says he has Capital One and Chase credit cards with no debt. He says, "I think such a law is ridiculous because it is further limiting our rights that we deserve as adults. If we can get tried in court as an adult and go to war, we deserve the same rights as an elder would.
Video and more after the Break
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I’ve never had $5,000 a year to spend at the mall, but that’s the average amount teens spend per year on retail, or at least it was. A new study from Piper Jaffray says teen spending is down 14 percent this year. My friend Rose Powell and I know all to well about cutting back, “Now we definitely go, oh we should go do this. And then the first question is always like, how much does that cost?”
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