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As credit card companies currently do not have any age limit to start accruing credit card debt, they hand out credit cards to students like handing out candies to young children. Some of the students are even as young as high school students. Shockingly, according to a research, 2 out of 3 high school students in the United States have credit cards and have already piled up debt thanks to immature and reckless spending, especially by freshmen college students. Credit card companies are preying on these “kids” by getting them to start piling up debt early, spend as often as possible and pay every month. Some of these students are even barely legal to have a job to pay off their credit card debt!

The new credit card legislation has recently been signed by the president. Now students who are not even legally able to earn money to pay off what they owe, can not obtain a credit card. Students who  already received a credit card before the new law was signed will have their burden eased by the legislation.

The new legislation regulates important points related to interest fee spikes and late payments and also the minimum age of a student to have a credit card. Unless a parent, legal guardian or spouse is the primary cardholder, a student under the age of 21 can not have a credit card. The student also can not increase the limit of the card without any written permission from the primary cardholder. The only exception is in the case that the student have proof of their own income. They are required to submit proof of regular income earnings and an exemption to the need for their parents to allow them to have a card.

The US’ total credit card debt has reached an estimated $963 billion according to White House. Moreover, nearly half of all American families have an average amount of credit card debt over $7,000. The new bill will take effect nine months after it was signed and it is scheduled into effect in July 2010.

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