The Real Problem With Credit Cards
As a follow up to yesterday’s guest post, here’s an article written by TIME that says the real problem with credit cards is the cardholders.
Credit-card companies, though, may not be the only ones we need to be protected from. Every penny of Americans’ nearly $1 trillion in revolving debt started with someone — some individual person — whipping out a piece of plastic and making a decision to use it. We could consider that free will and just call it a day, but there’s plenty of reason to believe the story isn’t so simple. There are piles of evidence that people are bad decision makers when it comes to how they use credit cards. Even when presented with full and fair information, they often make decisions that are not in their own economic best interest…
We can blame credit card companies all day for their sneaky profit making tactics, but no one is forced to use a credit card. Many people view credit as free money and throw caution responsibility to the wind. Even with the new regulations, there will still be tons of people with unmanageable credit debt. Why? Lack of personal accountability. The government can’t protect you from yourself.
This blog is all about Finance, Fitness, Fashion & Fun - the sum of my life. If you like what you've read, feel free to subscribe via (feed reader) or (email) to follow along.
Precisely. The recent news about how the credit card companies may “retaliate” against the new legislation by reintroducing annual fees and charging interest the moment you make a purchase really burns me up. I feel like I’m being punished for other people. Granted, not too long ago I WAS other people! But I learned my lesson. No need for others to suffer for my mistakes.
I wholeheartedly believe that the person that signed that contract is responsible for abiding by that contract. Too many people use credit irresponsibly. The other day I was at Macy’s (my fave dept store) and the lady in line behind me commented on the fact that I have a ‘black’ Macy’s card. That I use it more than her. She then said she doesn’t use hers as often because the interest rate is too high and I gladly told her that I don’t pay interest – I don’t buy what I can’t pay in full.
I understand the need for credit cards and why people use them, but using them comes with a consequence. Everyone should take responsibility for their part in this crisis.
I just received a notice in the mail from Chase. The minimum finance charge will be 1.50 I think even if you use the card then pay it off before the end of the month. I guess they are changing tactics to get at those that are financially responsible too.
If I were a Chase customer, I’d never use their card again. Responsible people have options. [-SM]
Thank you for saying it! I get so tired of hearing people bitch about credit card companies’ sneaky tactics.
Yes, they’re out to get your money. And they can be pretty damned sneaky about it. But we should all know that when we get credit cards. So why do people still rack up debt?
There are, of course, cases where it’s unavoidable. I’ve been in them several times, thanks to medical problems. But perhaps that is why it’s especially frustrating to hear people complain about how credit card companies are so sneaky, as though that were the only reason they got into debt. Certainly, it wasn’t the idea — the one so many people wholeheartedly embraced — that they can buy whatever they want, whenever they want.
Yeesh, I’m especially bitter today. I think I better go take in some sugar to lighten the heck up! Thanks for letting me rant, though.
I keep forgetting your comment button is above the text in the post.UGH I look around at least a minute before I find it. LOL
Yeah I agree! Credit Card problems normally = user error!
Sincerely,
Go
I am so tempted to use my credit cards more and more. I’m so proud of my zero balances from month to month. But I want some stuff. I’m opposed to charging something I can’t pay back, but still, even being as responsible as I am, I’m afraid of my cards now.
If EVERYONE stopped using credit – or even used it “wisely” as the article suggests, there would be no United States. Seriously, no credit, no country. It almost happened and we’re still on the edge. I think the issue is deeper than folks not using their credit cards properly. Heck the U.S just “created” money to get themselves out of debt and in the beginning had NO folks to secure the debt (other countries). Ummmm . . . off topic, sorry.