I really think that responsibility falls directly on the individual who is using the credit card. Either use it wisely or become a slave to debt. Some people, including myself, needed to learn our lessons the hard way, while other are just savvy enough to know better.

Credit cards are soul-less peices of plastic which are controlled by the cardholder, and are neither good nor evil.

I signed up on campus because I liked the free T-shirt, however, the next few years were spent racking up several thousand dollars of debt.

Personally I think colleges should take an active role in educating their students to the dangers of debt before they are allowed to sign up.

Jason
http://www.redeemingriches.wordpress.com

I think if they are going to use it for whatever reason this is very important to avoid overspending. However, I avoid any use of credit cards but to be objective…if they are used responsibly which is far and in between for most people I don’t see the problem.

“and hope their children make wise decisions” not “and hope they make their children make wise decisions”

I believe education is key (in any arena). College students are young adults and in the position to be making decisions for themselves. If properly educated, and with a prayer or two, parent’s should stand back and hope they make their children make wise decisions: as whether to get a card, and if so, wise use of it.

I’m recently graduated college. I also recently went through Dave Ramsey’s FPU. I struggle with the hard-line on credit cards, but clearly understand why Ramsey makes the line.

But I’m above the line! So I tell myself. I have spent WAY too much time reading the ins & outs and fine print of credit cards. I have been savy. I have paid mine off religiously. You could say I’m one of the few “rare” ones who for the past few years have used my (now two) credit cards to my advantage on everyday purchases (like food and gas) … to the tune of about $500. Not bad. Plus my daily purchases are consolidated into two simple payments (each card) per month. How convenient!

A lot of pros in my mind, until I took a step back to dwell on things in the last few months.

1) As Ramsey argues, I’m technically in debt, if even for just a short while. Not a big deal, I already budgeted the money to pay for the purchases. But what if something happens to me, I get hurt, can’t schedule my payment? Or, I die (God forbid) and my wife doesn’t think to schedule the payment amid the sorrow until the account has been hit with late fees and accumulating 20% interest? Unlikely, but something to think about.

2A) I get cashback (1-6%) on everything I’m buying, redeemable in the form of checks. It really stretches the money I use. But I’ve begun to think about where the cashback is coming from. I’ve determined it’s either from the fees charged to merchants, estimated at 1-3% from what I’ve read, or from other, less nimble, credit card users paying late fees and high interest rates.

2B) Do I wish to create higher overhead for businesses? What am I supporting? Do I enjoy doing business with a company profitting the way it does? I know people sign the dotted line and agree to the terms, but the profit is generally coming from the fees and interest on debt, lots of it, weighing down the card users.

3) How much am I really benefiting? $100, maybe $200 per year? That is a day, maybe two, of work for most people. Is the use worth the overall expense?

4) I’ve never thought to use my credit card for emergencies. But many, even Bob, say that’s why they have them. Really? If I need to pay a large bill due to an emergency, I don’t want to put it on my credit card …because I can’t afford it! I would rather seek wisdom and help from God, my true provider. Perhaps talk to my family or true friends for a bailout, or even get on a payment plan with the entity I can’t pay.

OK! I guess I had an “emergency.” Just last month I was at the doctors, and expected a certain co-pay. However, extra services were provided and I owed more than twice what I expected. I didn’t have the cash to pay. The receptionist reminded me they accept credit cards. Phew, I was saved! But, out in the parking lot, talking to my wife, we realized I was charged for services that hadn’t been stated up front. If I hadn’t used a credit card I would have been forced to discuss the charges and pay only part of the bill in person. I like to think I might have avoided paying for what was never clearly explained to me. I eventually got refunded, but this could have been resolved before I even paid.

After clinging to my wonderful credit cards and gaining a few hundred dollars, I’ll be leaving them behind. I’m ready to leave the scheme behind. Once I reach the minimum cashback payout, my wife and I will be closing our accounts. We’ll feel a lot better. I won’t feel like the small business owner I’m paying is losing 3% of his sale to Visa, MasterCard or a megabank.

I guess I’m slightly concerned about my credit score, as it’s good right now and helps make it hassle-free to open an online savings account, get a respectable auto insurance rate, or whatever else our society has woven FICO into. But, I won’t be losing sleep over it.

Oh, please don’t think I’m just trying to be noble or that it won’t make a difference. People say the same about voting. Why bother? Well, change has to start somewhere, sometime, with someone. A recent documentary I watched on Walmart, and it’s effect on communities, brought similar feelings.