People have grown up thinking, if they don't have the money now, then we can just put it on our credit card & we'll "pay for it later". Simple as that...RIGHT? Not so much!
We are so into "instant gratification". It's what we've known our whole lives, so what's going to change it now? Whether it be an nice new pair of shoes we just can't live without or that ten dollar lunch 3 times a week we just don't seem to have the cash for?
{photo courtesy of "Make Money Online At Home"}
My theory is this, if you don't have the cash to pay for it RIGHT then, you don't need it! Yes, there are plenty of times we need to use a credit card online or for larger purchases, but those should be paid off in full by the end of the month! Other wise, those credit cards are more than likely going to gain interest & you are going to end up owing more money than the pair of shoes even cost!
According to a Discovery Company production, How Stuff Works, most Americans have a least one credit card, & sometimes two or three (par. 1). Many people can't resist the urge to use their credit card for whatever they must have right then & there, when they do not have the proper amount of cash in their bank account at the time (par. 1). This is called impulse spending, on things people don't really need & this is where credit cards become a problem (par. 1). If people are using their credit cards on things they don't currently have the money for, then obviously they are things that they can't afford!
How people get in trouble with credit cards is when they carry over a remaining monthly balance each month & then are also responsible for the interest it gains, which is sometimes as high as 23% (par. 2). But when people are out shopping & just swiping their card...they aren't quite thinking about the bill that will be coming in at the end of the month that will be eventually be WAY more than their purchase the next month if they don't pay it off!
Once again...corporations...in this case, credit card companies, look so easy & simple but then don't always explain clearly what you are going to have to deal with later on. We have to be smarter than the companies & not let them take over our finances & trap us in debt for forever!
Dear Kati,
ReplyDeleteCredit card debt is an important issue in America today. However if one goes into debt that they cannot pay back then they are stupid and deserve to be a slave to the credit card company. Like you said in your blog if somebody cannot pay for something with cash then they can survive without it. People do not need to spend ten dollars on every meal or buy new clothes unless they have the cash for it. Spending money on new clothes and expensive food does nothing to help somebody survive or make their life better. Another thing you mentioned is that many people are used to instant gratification. People need to understand that they will never be given anything. People have to work for everything they have and nothing comes easy. Thank you for writing Kati. Credit card debt is only a result of irresponsibility and laziness. People need to learn how to work hard for what they get instead of turning into beggars.
Junco
Dear Kati,
ReplyDeleteI can relate to this blog post in several different ways. I am so against credit cards I still don't have one myself. Although I am getting ready to break the chains and get one because it's about time to be purchasing my own home, therefore I am going to need some kind of credit to do so.
"How people get in trouble with credit cards is when they carry over a remaining monthly balance each month & then are also responsible for the interest it gains, which is sometimes as high as 23%." Knowing this honestly drives me away from wanting to get a credit card. That rate is insane!
"People have grown up thinking, if they don't have the money now, then we can just put it on our credit card & we'll "pay for it later"." This is where we get introuble thinking we will just pay it off later. I don't have very good self control when it comes to $, so I am honestly trying to do myself a favor by not getting a credit card.
Thank you for you post. I will soon be back for more.
Chimpanzee