According to a research, an average American have 40% more credit card debt today as compared to the average household debt in 1998. Does it mean they are relying more heavily on credit cards? Or credit card companies have trapped them by demonstrating much easier terms.

Congress has passed Credit Card Act 2009 stating that consumers will have much more control on their credit card debts and they can repay debts under much easier terms. Now credit cards companies will have to tell customers how long will it take to pay off their balance. It will benefit consumers in one great way, they can figure out the minimum possible payment they can make at any given rate.

There is one specifically positive provision that affects youth under 21 years, which states …

“People under 21 will need parents or an adult co-signer to get a new credit card or to show relevant documents which show that they have an income source through which they can pay their own bills.”

It is found that credit card companies attract youth at campuses by giving them charming deals to sign up for credit cards. Mostly students are using more than 1 credit card at a time. Not anymore, due to this condition it will not be that easy for credit companies to attract students, and make it easier for youth to avoid credit card debts.