I would like to enlighten some parents about some of the things going on with credit card debt and their teenage kids.
Did you know that 32% of all teens own a credit card? Most of them will receive a credit card with there name on it, the other half will have your name on the bank card.
The very first step in watching to see if your teen is responsible or not is keeping an eye on his/her bank account transactions. Make sure your teen does not keep going into overdraft, which might mean that they may not be keeping a close eye on how much they are spending. If this happens this will mean that you will have to have a talk with your child about financial responsibility and spending habits.
If you are having nightmares about your child using a credit card, you do have options. You could decide to give your teen a prepaid card or a stored value card. Both cards do not require a bank account and they are much better to use for teens than a real credit card. Below is a small list of stored value cards and prepaid card websites you can research on your own:
Upsidecard.com – This is an online visa prepaid card.
Allowcard.com – This prepaid MasterCard helps teach teens about finances while they spend money. Parents have 35 options to control the card.
PayJr.com – Parents have the option to deposit there teens allowance into the Payjr card. The Payjr card can be monitored by the parents.
Parents Credit Card Debt is bad enough, but you would not want your teen to learn that from you. Because it will always lead to Consumer Credit Counseling or a Debt Negotiation Services to get them out of debt.
Parents need to teach there children how to control there spending, how to save money. Show him/her the value of a dollar. If you are in Debt yourself, teach your teen how to stay out of Credit Card Debt by telling him/her not to do what you did. Explain in detail that you overspend or you ran up your credit card by not keeping an eye on the amount of money you were spending.
Here are some more tips to teach your teen about managing credit cards:
1. Always pay your bills on time
2. Only choose Credit Cards with Low Monthly Interest Rate
3. Save all of your receipts from your transactions
4. Read everything in small print on the back and front of the Application forms
5. Be very cautious of give-aways, contest and gimmicks they are used as a lure for you to sign-up
6. Save all of your old Credit Card Statements. You may need to refer back to them if you run into any problems
The Credit Card Companies will go after any person that is capable of writing there signature on the back of one of there cards. With so many Card Companies to choose from it is inevitable that there will always be Credit Card Debt, Debt Negotiation Services and Consumer Credit Counseling Companies will always be here to help bail everyone out of Debt.
Author Leslie Johnson feels that any Credit Card Debt is a real problem for many Americans, but when it happens to your child that is when it becomes extremely serious. Teen Credit Card Debt is growing and if you need any help getting out of Debt Please visit http://www.debtsettlementcuradebt.com for your free consultation
Article Source: http://EzineArticles.com/?expert=Leslie_N_Johnson
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