Increasing education on and limiting the use of credit cards among young people is a key aspect of the Credit Card Accountability, Responsibility and Disclosure (CARD) Act.Jared Bernstein, senior economic adviser to the vice president of the U.S., discussed in a conference call Tuesday the importance of including young people in consumer protection reforms within the CARD Act with college media.”The CARD Act is a key part of a number of administrative initiatives to increase the protection of consumers,” Bernstein said. “Our economy was in a recession … because consumers as well as businesses often took on far more debt than they could viably service.”According to statistics compiled by CreditCards.com, 309 million Visa credit cards and 352 million Visa debit cards are in circulation in the U.S. as of June 30, 2009. As of September 30, 2009, 211 million MasterCard credit cards and 130 million MasterCard debit cards are in circulation in the U.S.The CARD Act includes young people because of the consequences they face because of bad credit and debt, Bernstein said.Eighty-four percent of undergraduate students have credit cards, an increase from 76 percent in 2004 when the last study was conducted, according to the Sallie Mae “How Undergraduate Students Use Credit Cards” 2009 report. Only 2 percent of undergraduates had no credit history.Undergraduate seniors graduated with an average credit card debt of $2,900 in 2004. The 2009 report found undergraduate seniors graduated with an average credit card debt of more than $4,100, and almost one-fifth of seniors carried balances greater than $7,000. Young people who “get in over their heads with credit cards” have more damage to their credit score and a tougher time getting their career started, Bernstein said.The act prohibits credit card issuers from giving credit to anyone under the age of 21 unless the person has a co-signer or can show proof of sufficient income. A co-signer has equal liability for payment as the underage card holder, which could affect their credit report.Bernstein said co-signers will be educated on the co-signing agreements and terms.”One of the important pieces of this consumer protection is we’re getting away from the 17 pages of tiny font that only someone with a Ph.D. could wade through,” he said. Emily Burris, coordinator of the LSU Student Financial Management Center, said this reform will prevent students from graduating with credit card debt in addition to any student loan debts.”The under-21 age limit can be somewhat of a controversial idea because students feel independence because college has started,” she said. “But it will make students more aware of being cautious about not running up a certain amount of debt. It will encourage conversations about managing debt.”Bernstein said the CARD Act also urges colleges and universities to require debt and credit management classes on campus.—-Contact Mary Walker Baus at [email protected]