Young and in debt

Young and in debt

More than a quarter of Arab youths owe money, mostly in the form of credit cards and personal loans. But how did they borrow so easily?

March 7, 2010 6:40 by Aarti Nagraj

While consumer spending could certainly help given the current economic situation, such high accumulation of debt amongst youngsters will be cause for alarm for some.

In the US, a new law, which came into effect in February this year, states that no one under the age of 21 can get a credit card without a guarantor (a parent or another adult who is liable for charges not paid), or unless they can prove that they have enough income to make monthly payments. The ‘Credit Card Accountability and Responsibility Disclosure Act of 2009′ also states that card companies cannot market cards on college campuses.

“I think that financial management is a big undertaking and I don’t think we should allow young people to get themselves mired in a lot of debt before they’re really old enough to understand their own financial future,” Rep. Keith Ellison, one of the bill’s chief authors, told local media.

“I want the kids in our society to have a good start on adulthood and I don’t want them walking into mounds of debt. In my opinion, it was a way to look out for kids and help kids to be successful financially,” he said.

All of which begs the question: Do Arab youths also require stricter guidelines in order to curb their spending habits, and limit their access to loans?

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Tags: Arab, borrow, cars, credit cards, debt, loans, nationals, Saudi, UAE, youth

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3 Comments

Omani on March 7, 2010 7:04 pm

consumerism means that the latest mobile , and a new car is how many have accumulated debt
Miss Anne Thropic on March 8, 2010 10:56 am

Very sad. The concept of living within one’s means is lost on nationals and expats alike in the Arab world.
Ronald on March 10, 2010 10:28 am

I have spent my entire teenage hood and early twenties dodging offers for auto loans and credit cars and stupid personal loans.

Kids and youth tend to want to have the ability to have everything, and a credit [card] gives them just that. they are too young to understand the ramifications down the line.

i dont blame the young people, they are foolish by nature, it’s the banks that should be blamed, and the financial arm of the government for carring more on the end year bottom line than the financial well being of its young subjects. national or otherwise…

every time there is an advert for some type of credit, banks, and their culprits the ad agencies go out of their way (sometimes genius) to make that taking on a debt and repaying it is as easy as 1 2 3… the pages of litigation, rules in fine print are rushed over by bank employees so that they can meet their quotas. i have yet to meet a banking employee that doesnt try to offer me some type of useless loan pledging that it is very easy and i wont feel the difference…

Rubbish… although unfortunately it seems like its natural today to live in debt… it is not if you dont have the money for it, it means you have not earned it…. that is the main problem…

the concept of earning something after hard work has dissapeared.. the bottom line it seems is what matters