Summary:
Provides statistics on the number of Americans financing credit card debt. Denigrates the overuse of credit cards.
Do people overuse credit cards
In 1980, 56 percent of American adults had at least one credit card. Now, that number has grown to 76 percent (Weiss 49). Accessing credit has gotten easier for everyone. The American society is being pulled into the alluring world of credit cards. Having a credit card increases the impulse to spend more and more. They have become an obsession and have caused people to rely on them. Though at times they can pose as a convenience, their overuse could be the mere result of ignorance. With an overwhelming urge to buy what the eye desires, Americans are overusing credit cards and digging a hole deeper and deeper into debt.
Credit cards were developed by an unlucky businessman how went to a diners Club and forgot his wallet. He asked if he could pay even if he didn't have the cash on hand, The Diners Club hadn't anything to say and ultimately it led to cards of all types everywhere (Green 4). The intended purpose was to act as a source of convenience to those who were without cash or checks at the appointed time. Credit cards have no allotted place to be used but options are becoming more available to the different genre of stores. James Pratt a financial advisor states, "Credit cards seem like a one way ticket to paradise, giving you the power to buy, buy, buy whatever you desire" (Green 24). With this development, the overuse becomes more prominent therefore furthering the urge to obtain. In the beginning it was most likely meant for good but eventually developed into a fetish that continually increases the urge, which also leads to the overuse of credit cards.
When you sign for the purchase, it is the promise to the company that you will pay for the bill later. To sign may be more than what was bargained for but that now give the creditors the right to reposes.. The whole action of pulling out a piece of plastic that can momentarily give whatever is wanted can be very appealing. It is not a hard task and can now take mere seconds but these desires can lead to debt. Credit owners and lenders love it when money is over spent and people are in debt because it helps the economy (Weiss 29). When money is overspent the country benefits because they now have your promise/signature and continue to make more money until it is paid off. This can happen by spending money that you don't have, or not having the income to back up the excessive spending.
Impulse is a sudden wish or urge that prompts an unpremeditated act or feeling. It is one of the causes that prompts over usage. It is the need to have that item on the spot, the urge to buy it and the downfall, is not thinking of the consequences such as, bad credit (Karyline 59). Before credit cards are purchased they should be carefully examined to understand the finance, interest rates, and credit limits (Smith 107). When you go over your credit balance, purchases could be denied or belongings reposesed. Bad credit in itself can cause a loss of the creditors trust. This in turn can prohibit you from purchasing things that require good credit. The eye desires much but the urge will not rest until the card has been overused.
Not knowing how the credit card system works can be very detrimental. Interest rates are often misunderstood and hard to comprehend. As more money is charged, more the interest amounts increase correspondingly (Smith 22). Knowing that the amount you charge could have ten; twenty or thirty percent interest rates could affect the way you charge items. Anne King a college student said, "Credit cards are easy on purpose to lure you into their world of debt" (Smith 9). Minimum payments barely cover the cost of interest, causing the purchase price of an item to multiply over time (Weiss 211). People show their ignorance by not getting information from family, friends, or acquaintances about the consequences of overspending. This in result furthers the push for overspending and going into debt.
The hole grows deeper and deeper in debt as a result of overcharging. When credit is poor it affects the family to come also. Any left behind wages and debt will have to be paid by the family left behind (Weiss 30). There is a overuse credit cards for many reasons, some for lack of knowledge, and others acting on pure impulse. The eye desires what the wallet cannot produce and while there are advantages in having a credit card the end result for most people is debt.
This is the complete article, containing 777 words
(approx. 3 pages at 300 words per page).
