Many of our Escondido readers know the unfortunate reality that dealing with debt is not fun. People in America are burdened with all different types of debt in today's world, ranging from credit card debt to mortgage debt to student loan debt. And what all of these types of debt have in common is the impact they can have on a person's credit score. When debts grow beyond what an individual or family can endure, many will consider bankruptcy as an option to get a fresh start financially.
In an effort to better inform people in California, and especially college students, about the risks involved in taking on credit card debt, a state lawmaker has put forward a proposition. According to a recent article, this lawmaker has proposed a bill that would explicitly require the issuers of credit cards to inform potential cardholders about interest rates and minimum amounts of time to pay off balances. The proposed bill is designed to apply to individuals who are between the ages of 18 and 26 and who are first-time cardholders.
Putting out more information about the risks involved with credit card use can only be a good thing. However, while a lack of information and sometimes misuse of credit cards can lead to an unmanageable debt burden, oftentimes individuals and families face unexpected expenses and in those instances they turn to credit cards. Sudden medical emergencies or the loss of a job can cause a great deal of strain on a person's financial situation, and in those situations they are usually glad they have credit cards simply to meet daily expenses. If the situation gets out of hand, however, Escondido residents would probably be glad to know that bankruptcy is an available option.
Source: capital public radio, "Bill Would Make Credit-Card Issuers Inform College Students of Debt Risk," Amy Quinton, April 8, 2013