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Teenager Credit Card Usage - Essay

Do you have a credit card or did you have a credit card when you were a teenager? According to a survey in Australia, about a quarter of Australian teenagers owe a credit card. I agree that credit cards are very useful, you can buy anything without carrying cash or having enough money to buy it with using a credit card, which is really amazing. 


However, teenagers are suggested not to have a credit card.


This is an example of a young boy involved in a trouble (?) due to a credit card. The guy wanted to buy a car which cost about 20,000 AUD. However, he did not have enough to buy it as he was very young. In order to buy the car, he decided to use his credit card. Of course he needed to pay back the money which he borrowed by using the credit card. It took him a few years. Once he had used the card, the interest started to increase and ended up with 30,000 AUD. This means he finally had to pay 50,000 AUD in total to buy a 20,000 AUD car. This is more than twice as much as the cost of the car. When he had finished paying the full amount of interest, the car was only worth 2,000 AUD. This story tells it is not good for many teenagers to use a credit card.


One of many reasons teenagers should not have their own credit card is, teenagers are so young that they are not responsible enough to deal with their money. This is shown by questionnaires which asks if teenagers have understandings of using money. It could be said that it is free that teenagers use their own money, or no one cares how they use it. However, this is totally wrong. When teenagers use too much amount of money with their credit card, it is clear that they are soon going to be unable to pay the dept. If they bankrupt themselves, it is not only their responsibility but also their parents’ responsibility.


Also, many teenagers do not have a job. In Australia, for example, three quarters of teenagers do not work. It is not suggested they borrow money if they do not have any income. Even if  they have a job, they are still not able to gain a solid income because they are too young to deserve it. In addition, part-time workers get only a quarter of the income of the average teenage full time workers. Moreover, if they do not have enough income, they have to borrow much more, therefore they need to owe a lot of debt.


Another reason is that having a credit card can make people blind. If people are using a credit card very often, they will soon be unable to find whether anything is payable for them or not. This is because the use of credit cards can make people see no real money going out of your wallet. Then this can result in the credit card users buying too much money.


What is more, there is a system to value people’s ability to pay. If you use too much to pay back the debt when you are young, then in the future, it could be more difficult for you to borrow money to buy something very important and expensive such as a car and a house. If you fail to pay your debt at a few times by the deadline, then you may be valued as a person who does not have the ability to pay the debt back. If this happens, you are no longer to be able to borrow a large amount of money. Thus, it is better not to make mistakes when you are young because you need a lot of money in the future.


In addition, there is a problem which is called a debt spiral. For instance, if you borrow money without having enough money to pay back, you have to work and earn money to do that. About a half of credit card users often said to be called revolvers, which means they cannot pay their debt by deadlines usually at the end of a month, and have to pay more interest in the following month. However, this is absolutely not a good thing to work just only to pay back the money. Also, the debt increases as it is not payed before the time it should have been done. Some people, even adults, cannot catch up with their increasing debt. What is worse, teenagers, who do not have much income, they have to work harder and harder than the adults only to pay their debt.


To sum up, now it is obvious that credit cards are not safe for teenagers at all. If you do not want to waste a lot of money and the time to work, you had better stop using or keep not using your credit card.