Evaluating The Risks And Benefits Of Credit Cards

Throughout the extract, “Strapped,” author Tamara Draut notes why today’s young adults have complications getting financially ahead. Along with student-loan debt, today’s college students may also leave with the burden of credit card debt. Draut argues that college campuses aren’t sufficiently regulating card companies on campus, therefore putting their students at risk for debt.

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.

The later idea suggests that one of the major conflicts associated with credit card debt among college students is because of the relaxed view taken on credit. To illustrate, “83% of college undergraduate students in the US have credit cards…”(Wang & Xiao, 2009) exemplifying the potential danger of accruing debt by signing up for so manu credit cards. Furthermore, with increased costs of education, universities find it is acceptable for students to pay for tuition by credit card. In certain circumstances, credit cards have become a quick remedy and students are forced to supplement income to pay for education and other necessities and as a result perpetuate the debt issue.

In “Strapped,” author Tamara Draut explains why today’s young adults have trouble getting financially ahead. Along with student- loan debt, today’s college graduates also leave with a higher risk of credit card debt than previous generations. Draut argues that college campuses aren’t regulating the card companies on campuses, therefore not protecting their students. She reasons that a problem on college campuses across the nation, credit card debt, has spun out of control by credit card pushers leading students into debt and feeling financially held back.

     With religion playing an important role in the average Americans lives, consumerism began to grow in the white and blue-collar workers. Their families started to spend extra cash instead of saving it. Washing machines, dryers, and new cars became commonly bought items. The Homeowner who needed some extra cash, but couldn’t work enough hours to purchase that item when he needed it, started to use personal credit. This began the craze of credit cards. ”The Diner Club” introduced the first credit card in 1950: By the 1970s the ubiquitous plastic credit card had revolutionized personal and family finance”(Henretta, pg.790). The awareness of addition free time was aware

Last but the most effective strategy is the CREDIT DEBT MANAGEMENT. Learn to set up your budget in the most appropriate way. Create a monthly or weekly plan of the expenditures and then proceed. Ignore the secondary elements; pay your key focus on the primary ones. If you have multiple credit cards, then start with the one, for which minimum amount of payment has to be paid. And, then proceed accordingly.

Debt has become the new American bedfellow; “The average U.S. household with debt carries $15,762 in credit card debt and $130,922 in total debt” (Issa). One should keep in mind that the “$130,922”is a median debt; some live debt-free while others have substantially higher debt (Issa). For twelve years running, the cost of living in our country has grown greater than our median wages contributing to the overall mountain of debt incurred (Issa). Our country has grown used to the debt that looms because that is what the American way has become; buy bigger, one can always settle finances at a later date. Juliet Schor discussed how “The new consumerism, with its growing aspirational gap, has begun to jeopardize the quality of American life”. Americans have grown tired of carrying a proverbial weight of their debt and are fighting against the normal American life of living

With an ever growing rate of national debt, americans are making more decisions on their spending rather than in their savings. According to Grayson Bell’s article ‘Overspending in America – The Sad Truth’ publishing statistics on the overspending truth of the american lifestyle shows that, 'The average American spends $1.33 for every dollar spent’’, which is devastating to the american economical growth of the country. According to the usdebtclock.org, the US owes $898,235,950,000+ in credit card loans, this is an ever growing debt that the american people have caused by overspending. Many spend money to embellish a lifestyle that can’t be afforded, hence conspicuous consumption, yet without a strong discipline to control their temptation it has become a finite between spending and savings. Forgetting the difference between the want and need can truly affect how americans feel about overspending money. In Kathryn Buschman Vasel’s article,’Why we over Spend’’ the reason behind an individual’s failure to save money states that ‘almost everyone will overspend at one point in their life, but some feel like they deserve the same goods as their peers -- and that’s where the problem lies: not knowing the difference between wanting something, deserving something, and being entitled to something’’, many are oblivious about the obsession of spending on the wants, so the poor decisions continue to arise with an America being now a consumer and not a

Financial literacy is essential in living in today’s society, therefore it should be taught at a young age because people have been going bankrupt more than ever before. According to Kelly Walsh, “Students between ages 18-25 have at least one credit card. By the time they graduate half of them have four or more credit cards that have an average balance of $3,000” (Walsh). If students were taught at a younger age how credit cards actually work; they would better understand the consequences of debt. For instance, if students were to research different credit

First, we must blame ourselves for letting this debt build up. It’s so easy to just say “charge it” and deal with the money later. It’s so much more convenient to use a credit card then using our cash. In the April 2005 issue of University Wire, Dr. James Roberts conducted a study about the spending habits of students around the country. He found that students who used credit cards to pay for their books weren’t able to tell within $30, $40, or even $50 dollars of how much they spent compared to the students who used cash and were able to tell within a few dollars how much they

Access, a credit card company, has a slogan that is very universally applied, “Access takes the waiting out of wanting” (Oxford University Press, 2016). The social normal for America is to be a consumer. The textbook explains, a society that is consumer based needs a large middle/upper class, which allows time for hobbies and the use of services that goes beyond basic needs (Kornblum and Seccombe, 2017). Credit cards are part of our economy because of low income; as well as, society's mindset that certain items are necessary, although the item may not be. For example, a family has two children and both mother and father make minimum wage. The low minimum wage prohibits the mother and father to afford shelter, food, and clothing. The parents will also

“The average American owns 3.5 credit cards and $15,799 in credit card debt… totaling consumer debt of $2.43 trillion in the USA alone.” (Beckner). Debt forces many people into depression and worrying lives. People struggle to discover happiness through financing goods, but struggle even more to find a way out of debt. Through consumerism, people lose their finances in department stores, car dealerships, and much more. Most of the possessions people buy with credit cards become impractical within a few months. The void they search for is never really filled. Consumerism is just a way to get the economy going, without thinking of a person’s individual finance

Do not live a life that you cannot handle, spend within your means. Be honest with yourself, if you can’t afford something, don’t buy it! Affordability is much more than the amount of money in your bank account, it also is how long it will take for the money you spent to be back in your account. Think of your finances as a long term process, not a short term fix. This is also why you should limit your credit card usage. If you rack up your credit card and lose your sole source of income,

Money remains to be one of the most important needs in life. It helps society survive by buying things that are needed to meet the basic human needs such as: food, clothes, etc. Sometimes, people earn a lot of money and learn to save it and others waste money they do not have, making poor financial decisions. What is the best way out? The best way out is having cash. Cash has a lot of advantages over credit cards. Choosing a payment method is sometimes difficult particularly for buyers who cannot control their spending. What is the best way out? paying and obtaining cash has more advantages over holding a handful of credit cards.

This is 21 century, many people use credit cards for online shopping, restaurants , Hotels, patrol stations and public transportations, etc .They don’t want to carry their money. So they use credit cards. At the time they start using credit cards, a lot of credit card frauds are take placed. So, polices have a new kind fraud to protect. In this assignment , I explain “how we sell our credit cards and how we protect from the credit cards frauds”.In our project, we used many strategies to sold our credit cards such as marketing strategies and market challenger strategies.