Bethany Clark Essay on Resolving Credit Card Debt

Golden Financial Services Scholarship: Golden Financial Services is a credit card debt relief company. The scholarship is awarded to the student who provides the best solution to delinquent credit card debt. Our goal is to give students the opportunity to find the next credit card debt relief option that Americans can rely on and all while helping a student who needs extra financial support.

ESSAY ON: Viable Options for Solving Delinquent Credit Card Debt & Obtaining Credit Card Debt Relief 

Growing up, I was a spoiled child. My parents did their best to give me everything I needed to be successful, and they paid for it in shiny magic cards. It was not until I was older, and when the gifts became less frequent that I learned the weight that came with the magic: debt. These credit cards were disguised as magic wands that could grant every wish and desire, but behind them were corrupt corporations preying off of people’s unintelligence on debt and credit. My parents were not able to gain a time machine and avoid their massive credit card debt, but they were able to take their mistakes and solve them and used it to teach me and my brother the danger of debt.

When my parents were mailed their first credit cards, neither of them really understood how it worked, but rather than educating themselves on credit, they took out their shiny new toys for a spin. This joy ride then led to a drive across town, then to a cross-country road trip, and next thing they knew, they were trapped in the “car” with no idea on how to get out. Because my parents never knew their consequences, they became dependent on credit cards to maintain their lifestyles, allowing it to dictate their purchases. Credit card companies tackle uninformed adolescents and portray credit cards as a glamorous object to help you gain the objects you deserve, but without proper education, they are shackles, that can sink you.

In a TEDx Wall Street Talk, speaker Alexa Von Tobel teaches about the extreme debt Americans accumulate and the mistakes they make to get them there. In her talk, “The One Life-Changing Class You Never Took,” she mentions the five money principles to follow: follow a budget, be debt free-pay cards in full, have an emergency savings account, negotiate salary, and save for retirement. Although Tobel’s principles are well thought out and ultimately effective, it does not help the millennials preparing for independence with no knowledge of these wallet saving tips.

With $15 billion in debt, Americans need to take this as a wake-up call and begin teaching their children the importance of saving and the consequences of debt. Tobel’s five principles should be part of a curriculum that students all across the country can learn and grow from. Although we can learn from our mistakes, we should still do everything in our power to avoid triggering the butterfly effect debt can have on families.

All high school Seniors are required to take a semester of Economics to graduate. In this course students study the Law of Supply and Demand, the stock market, different market structures, and many other components to the American economy; however, students only get a brief and vague introduction to debt, most classes do not even mention the term, “credit score.” How are adolescents expected to go out and be productive members of society when they are robbed of a proper introduction to the world of debt they are about to enter. Around 39% of college students have an outstanding credit card balance of $501-$1,000 with the majority of the credit card debt being held by Freshmen and Seniors. Credit card companies are notorious for preying on young students who have just gained their first taste of freedom. These companies send out cards to new Freshmen and portray them as a tool to help them live the luxurious life they want, and since 45% of college students do not know their own credit score, the impulsive purchases can add up, ultimately bringing down their credit score. The average millennial credit score is 634, rating “fair” on the FICO scale, but how are these students supposed to know how to find a solution to their accumulating debt if they never received a proper introduction.

Many high schools offer “life skills” courses to inform students on managing with debt and other important tips for adulthood, but let’s be honest, most high school Seniors would prefer to have a free period rather than a class learning about debt and budgeting. The apathy absorbing adolescents can also contribute to their potential debt, but it does not have to be. Just a small unit added to the Economics curriculum can help prevent countless students from being misinformed and falling down the rabbit hole of debt. Students are being taught to analyze Robert Frost’s “The Road Not Taken” but never the definition of a credit score? I am not meaning to say that school systems are terrible because they are not, but like all things, it can be improved, and the best way to start is with a course.

How To Apply For A College Scholarship:

To apply for a scholarship, students must provide a unique solution to the following problem.

**“ In the United States there is $15+ billion in delinquent credit card debt (people who are more than 90-days behind on credit card payments) — besides restricting the act of lending what are viable options for solving this problem?”**