How To Cancel Credit Card Debt

First Person: My Kids Won’t Die in Debt to Credit Card Companies

By Laura Quinn | Yahoo! Contributor Network – 14 hours ago

It's a parent's responsibility to have the "big talk" with their children about practicing safe borrowing. It's not as embarrassing as the birds and the bees talk, but explaining the pitfalls of credit card debt is just as important.
Throughout the years, I've heard different studies and financial experts talk about which age group makes up "generation debt." A new study published in the journal of Economic Inquiry focuses on young people who were born between 1980 and 1984. Authors of the study claim these people, who are essentially the older Millennials or senior members of "Generation Y," have more credit card debt than their parents and grandparents. At the same time, I've also read several articles about Baby Boomers (born in the 15 years between 1949 and 1964) carrying massive consumer debt into their retirements.
I'm not sure it matters who is the biggest offender when it comes to amassing the most credit card debt. However, I know I strive to teach my children to avoid credit card debt.
Paying debt off immediately
My sons are younger Millennials who were in middle school around the time the Great Recession hit. My younger son doesn't have any credit cards yet. My older son obtained two credit cards in order to build up his credit score. I have taught him to pay off his entire balance.
According to the new study, younger Americans pay off their credit cards at slower rates. Some experts warn members of generation debt may die in debt to credit card companies. While I agree, many Baby Boomers I know will die in debt, younger people can turn around their situations.
Learning to delay gratification
I admire my older son when he talked about saving up the cash to buy a house or car. As he has grown older, he found most people don't have the cash to purchase a home. He started focusing on building up a solid credit score so he could qualify for a loan interest rate. At the same time, he is also saving money for the future and paying for his college with cash. My younger son rarely wants to purchase anything new. He saves money by delaying purchases until he has the cash.
In contrast, the study found people born between 1980 and 1984 have debt, on average, $5,000 more than their parent's debt and $8,000 more than their grandparent's debt.
Finding alternatives to student loans
The authors of the study claim many young people have higher credit card debt because of their massive student loan debt. My younger son obtained his associate's degree while still in high school by taking dual enrollment classes at no charge. My older son works part-time as he attends classes. He has never taken out a student loan. As a parent who helps pay tuition, I receive a tax break.
I tell my children about the problems I had with debt when I first graduated from college in the mid-1990s. As a member of Generation X, I had access to dozens of credit card offers that appeared on a regular basis in my mailbox. I grew up watching the older generation put everything on credit. Although my children have to make their own mistakes in life, I know I've had that big talk with them about credit cards and debt.


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