Others are nervous that students will go out in a rush and start applying for as many credit cards as they can before this new law goes into effect, leading to huge credit debt and locking in high interest rates.

The fact is that our economy functions on credit.  What’s important to keep in mind is knowing the difference between credit and debt.  A person needs credit to his/her finance education, buy a home or a car and for other major purchases in life.  Unless you’re rich, that’s the way the system works!

So the question is – are you using credit wisely, or are you simply racking up debt because you don’t know the difference.  Perhaps you’re an emotional shopper and find that when you’re having a bad day, you need to shop to make yourself feel better.

Having a large amount of debt and the time it takes to pay it off in full is a real challenge, which is what this law is trying to prevent.  It is yet to be seen how effective it will be – but it is a step in the right direction.

For more information about TU’s Financial Literacy Program, go to:  www.towson.edu/financialliteracy