Credit Cards : Chapter Analysis

Subsequently, Draut also presents her opinion on credit card debt in the excerpt, “Strapped.” She discusses how credit card debt can negatively affect the lives of many young adults, which may lead to more problems down the road. She informs young college students about the dangers of credit cards. Draut explains that irresponsible spending may lead to a

O’Donnell’s essay explored the opposite of Scurlock’s, his essay was geared more towards the fact of not owning a credit card prior to entering the professional world. He explored his point through an educated professional man, who was constantly denied an unsecured credit card in spite of having a full time employment, no monthly house payments, no finances owed to other lenders and no dependents that need to be taken care of.

21. Which is true about the practice of marketing credit cards to teenagers? a. Teens are the number one target of credit card companies in America today. b. Brand loyalty to your first card is incredible, so credit card companies work hard to win you over first. c. Colleges are losing more students to credit card debt problems than to academic failure. d. All of the above 22. Which is not true about making purchases with credit cards? a. You spend 12-18% less when using a credit card. b. You spend 12-18% more when using a credit card. c. You are less likely to experience neurological “pain” when purchasing with a credit card. d. None of the above 23. Why do people think that the home equity loan is a good idea? a. There is a good tax refund. b. It serves as a substitute for an emergency fund. c. It’s a way to consolidate debt. d. All of the above 24. Kevin has the following debts: Home Equity Loan, $24,000; Visa, $1,200; Student Loan, $5,000; Car, $12,000. How should he prioritize his debt snowball? a. Home Equity Loan, Visa, Student Loan, Car b. Visa, Car, Student Loan, Home Equity Loan c. Visa, Student Loan, Car, Home Equity Loan d. Cannot prioritize the debt snowball without knowing the interest rates on each debt

In the world of personal finances, credit cards play an important roles in lives of many people. Sometimes, it's out of choice while other times it happens out of necessity. Regardless of why it happens, the numbers surrounding credit card debt are worthy of scrutiny in order to determine whether having or using credit cards is a sound financial decision.

The controversy between cash and credit is something that needs to be addressed. The differences between using cash and credit cards for making purchases varies depending on the type of person. Many people believe that credit cards are a better choice between the two. Credit cards offer more protection, more benefits, and simpler ways of managing expenses compared to cash.

In the article “ The Credit Card Binge : College students are engaged in some risky spending”, by Margaret Mannix; she points out the main ideas that credit cards does to students in college. Credit also ruins lives and it describes how students are targeted and that credit should be avoided at all times. Before anything college students should know what credit does to them if used in the wrong way. Lenders see students with bad credit as riskier than students with better credit scores. They make you pay for the risk that is not worth it and charging you a higher interest rate. This is a great way to inform college students before it is too late.

It's common that college students take credit card debt. Some are concerned about this fact in that graduates will face the harsh financial crisis for their low salaries and high debt. Nevertheless, others presume that it's a good start for college students to take up credit business. In my opinion, credit card debt can harm them for leading to the unreasonable consumption and harsh financial problems in the future.

Laura, you did a great job with explaining the importance of consumer credit. I think it is very important to have more controlled access to credit due to the unnecessary spending that takes place in the economy. I think it is a good idea for household to get into the habit of saving and get out of the habit of spending. With the recent economic turnover, mortgage companies and other investors had to get control of the credit that was accessible to consumers. When consumers go into default on their mortgage loans and credit cards, it causes issues for the lenders and their company. Having controlled access, it better was better for the business. Consumer credit has a great influence on the economy and personal spending, it is better for the

For many years, there has been an ongoing debate whether using credit cards is a positive or a negative idea. On the positive side, credit cards are a widely-accepted method of payment across the globe. One of the benefits of using your credit for payment is foreign travel, when you are traveling out of the country it saves you from having to exchange your dollars for the local currency, your credit card company calculates the exchange rate for you and automatically posts the correct charges to your account. (Yuille). In addition, credit cards are great for emergency situations where you find yourself in the position of having to spend a large sum of money that you had not budgeted for and may not have the money readily available. These unforeseen expenditures can then be worked into a monthly budget and be paid off in a series of monthly installments (Yuille). For instance, making a large purchase with a credit card and promptly making your monthly payments until the debt is satisfied, could improve your credit score which can help qualify for future loans should the need arise (Detweiler). Furthermore, many credit card programs have rewards programs you may be eligible for. Such as, being eligible to receive a percentage of your purchase as a cash back reward, earning airline frequent flyer miles for each dollar you charge to your credit card and often you are offered discounts on daily purchases (Vanderpool). Credit cards also allow for convenience. Having a credit card

Buying a house for most is the American dream, but with today’s economy many people are unsure if the dream can be obtained. The main concern for most people would be the financial responsibility. Many people believe that the financial responsibility is overwhelming and they are just not ready. Although some people believe they are not financially ready to purchase a home, buying a house is a better option than renting an apartment for three main reasons. First, becoming a first time home buyer can be a very exciting experience that can have a positive long-term effect on some one’s life. Second, a home buyer can make any modifications or changes to a home. Third, and most important, you will eventually own your home.

From the standpoint of a high school student who has ambitions of going to college and into the career world as prepared as possible, I saw this class as essential. It goes over a huge part of what adults and college kids spend countless hours trying to figure out. Having said that, there are some chapters that seem more essential than others. Since you can only fit 10 chapters into one trimester, here are 10 most important chapters. Chapter two is a good place to start because while chapter one explains the process of financial planning, chapter two explains how to carry out that process which is more applicable to life. Chapter three, preparing taxes, is the primary reason why I took this class and is extremely important to the financial planning process. Chapter four and five are also important because they pertain to making real life decisions like picking a financial institution, buying a house, and buying a car. Still, in hindsight I hardly retained the specific information in chapter five. It would be helpful to quiz and review often on this chapter because I doubt I’m alone in the retention of info for chapter five. Chapter six and seven both are about the two forms of credit. As far as the conceptual parts of chapter six, most people (that are in this class) probably know how to handle credit wisely or could figure it out with ease. So, unless it’s very important to go over both forms, I think that just doing chapter

The choice between buying a home and renting one is among the biggest financial decisions that many adults make. But the costs of buying are more varied and complicated than for renting, making it hard to tell which of them would be a better deal. There have been many discussions over the past several years about whether renting a home or buying is the better option for people whether you’re young and just beginning or older and more settled. There are many factors to consider and different steps to be taken when making either decision. There are many things that are alike when it comes to renting but there are also many differences if choosing to buy.

The cultural expectation that fuels our desire to want more than we need in reality is definitely rooted in the vision of the American Dream. The idea that If you don’t work hard, then you pay the price for loosing out on your dream. It’s your fault for not fulfilling your dream, so you shouldn’t blame the system. People are caught up with impressing other people, it’s quite ridiculous to what extent one can go to raise their status in the society. You’ll see people who will use credit cards to shop for the most expensive items and technologies, so that they assimilate with the rest of the high tech , upgrading world. This way of life became the norm in our society that if you decide to live like a normal human being and manage your earning and spend only on essentials items, then you are viewed as someone low. It’s kind of like a caste system. The more material things your possess, the higher up the ladder you will be placed in the society. It doesn’t matter how you achieved your materials, all that matters is you own a big mansion, nice car, latest phone etc. If you are on top of the caste system, then you’ll be prestigious and honored for your achievements. Society’s grand expectations on every aspect of life leads many people to turn into credit cards. Using credit card helps you get to the top of the caste system and not jeopardize your dignity.

In the same way college students struggle with the same problems as those in their 40s. On college campuses, “70 percent of college students possess at least one credit card” (Norvilitis). The trend towards credit cards is not only a college problem; Americans with a summation of different economic situations in general have increased the number of credit cards they have. The concept of buying whatever you covet when whenever inclined is a considerable selling point.

Credit Card frauds have become very common in banking scenario. Fraud preventions are critical to continue the confidence of the credit card customers. As it is very important to hold the confidence of credit card customers, credit companies had started educating the customers regarding the wide varieties of these frauds. This paper briefly deals about the issues related to credit card, its evolution, various methods of usage and ways to minimize the risk of credit card frauds. Visa misrepresentation on a little scale frequently happens in restaurants or other administration commercial enterprises, where a tip is given. It is essential to check your credit card receipts with your announcements to guarantee that you were not