Poor Credit card knowledge impacts teenage debt problems

10/04/2007

Recent credit card studies has highlighted that teenage credit card users could be heading into huge debts as a result of poor knowledge of credit card spending and how to pay back the money that is borrowed.

The worrying findings of the recent study that had been undertaken by The Personal Finance Education tells us that many teenagers have a no fear approach to the use of credit card, many see it as a simple way to acquire money. The facts show that 90 per cent of UK teenagers see it this way. The problem is made more difficult when they do not worry how the credit card balance will be re-paid.

The survey also points out that by the time half the teenagers are 17 they are likely to be in debt or they actually are in debt.

When it comes to repaying the debt one in twenty teenagers thought they do not need to repay the debt on a credit card.

'Whilst we are pleased to see that today’s young people are relatively clued up on the mechanics of spending and saving money, it's also alarming to note how seamlessly they appear to be drifting towards an adulthood of debt. We owe it to our young people to ensure that they have the financial acumen to deal with the responsibilities of being an adult. That's why personal finance education is absolutely vital in schools. We firmly believe that incorporating financial education into the existing school curriculum in a way that is relevant to young people's lives is the best way to help them gain and retain the financial skills they need for the future.' stated One PFE spokesperson.