| Mobile Phones & Credit Cards |
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Those first few years of adulthood are so difficult. All of a sudden we are solely reliant on ourselves to make decisions. We are able to make decisions concerning:
Driving Alcohol Gambling
All of a sudden one day we wake up and our whole world has changed. Unfortunately not everyone is ready for that change.
For most the big change occurs when we have a full time job. With a bit of money in our pocket the enticements to spend our money are very shrewd. Easy credit means we can spend what we have and more. The debt cycle is just beginning. Back in the early 1980's when I was at that age shopping wasn't as flashy as it is now. Credit card usage was also not as popular. I think I got my first credit card when I was 20 and hardly used it for many years. ATM's were only just starting to be seen in large numbers. The advantage was a gradual understanding of handling money.
Now they have credit cards as soon as they can. Mobile phones are also a must have item and with that can come very expensive phone bills. If they are not ringing friends they are texting them. Whenever they turn on the television they are encouraged to vote someone in or out on reality TV. It all costs money.
Unfortunately some get into real trouble with their credit cards & mobile phone bills. The option these days in Australia is to enter a part IX debt agreement. Now these came in 1996 as a flexible, low cost option to bankruptcy for low income people with few assets. For many this agreement still leads to bankruptcy with the resulting black mark being recorded on their credit record. The problem is the administrators fees ends up being just another debt that must be repaid and for some an impossible ask which leads to bankruptcy anyhow.
If you have family who are struggling with this type of debt maybe introducing them to money100 may be what they need. If their position is particularly grim, talking to the family Accountant to provide some advice may be the way to go.
If your children are reaching this age then the following guides might be helpful:
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