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Our kids are fortunate to be growing up in the most progressive and exciting time in history. Sadly, the very culture that offers them the world is also perpetrating this lie:

You are entitled to have everything you want even if you don’t have the money to pay for it. It’s not a problem. You deserve it. Get it now and you can pay for it later!

 

There’s a huge consumer-credit industry out there planning to give your kids their very own credit cards—personal passports into the abyss of consumer debt. This will not require your permission or approval, something that one reader is experiencing first hand.

Dear Mary: My daughter who is in college got a credit card and now she is in over her head, unable to pay what she owes.

She works part-time and makes a very small salary. With the high interest and late fees, the balance is now over $2,500. I will have to step in and handle the account.

How can I negotiate with the credit-card company to settle for less? I don’t know how she got this card on her salary but she kept quiet about not being able to make the payments until we started getting collection calls for her. I appreciate your thoughts and expertise. Millie

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Just recently American’s consumer debt—that’s everything except mortgages—hit $3.789 trillion.

So what’s a trillion? It’s a million million; a thousand billion or 1,000,000,000,000. A billion is a thousand million. Or 1,000,000,000.

young woman with a shocked expression examining a document with a magnifying glass

A billion seconds ago it was 1986 and Ronald Reagan and Mikhail Gorbachev opened talks at a summit in Reykjavik, Iceland. A billion minutes ago it was the year 117 A.D. A billion hours ago our ancestors were living in the Stone Age.

But a billion dollars ago in consumer debt was something like just two weeks ago!

Learning how to manage your debt starts with understanding what’s in the fine print.

The principle of fine print. Never trust the flashy print, the cool logos or the enticing promises. There’s always a catch in the fine print. Remember this: What the big print giveth, the fine print taketh away!

Changing the rules. When you signed by your signature you gave the company the right to change the terms at any time. They can raise rates, shorten grace periods and basically change the rules and terms to their advantage whenever they feel like it. But they must tell you in writing.

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