Negative Effects Of Credit Cards

James D Scurlock’s “Maxed Out” focused on the revolving use of credit cards to charge now and pay later and the fact that once the credit card was maxed out another one was sent from the credit card companies and the whole process begins all over again. Scurlock’s essay made the reader aware of the downfalls and hardships that can occur when credit cards are constantly used for purchases compared to Kevin O’Donnell’s “Why Won’t Anyone give Me a Credit Card”.

Credit cards can ruin any financial situation if used improperly. Let’s look at what our two financial authorities think about them. Dave Ramsey is completely against the idea of using credit cards. Being a devout Christian, he often finds his ways of financial teaching through The Bible. Proverbs 22:7 states “The rich rule over the poor, and the borrower is slave to the lender.” You are charged a premium for using a credit card in the form of interest. While you can pay off credit before the interest is charged, Dave insists that many people do not pay if off in time. It is better to get rid of the enticement altogether than to play with the idea of using a

Credit card debt is one of this nation’s leading internal problems. When credit was first introduced, and up until around the late 1970’s, the standards for getting a credit card were very high. The bar got lowered and lowered to where, eventually, an 18 year-old college student with almost no income and nothing to base a credit score on previously could obtain a credit card (much like myself). The national credit card debt for families residing in the United States alone is in the trillions (Maxed Out). The average American family has around $9,000 in debt, and pays around $1,3000 a year on interest payments (Maxed Out). Many people have the concern today that these interest rates and fees are skyrocketing; and many do not

"In childhood, a 'library card' takes you to exotic faraway places; in adulthood a credit card does." - Evan Esar

Credit cards are important financial instruments and they are often employed these days to fulfill the needs of financing important needs and requirements. People often use credit cards to buy necessary items as well as achieving access to luxurious ones that they cannot afford with their current savings. There are many things about credit cards that you may not have been aware of. Here, we inform you about the six things that you did not know about credit cards.

Consumers use credit cards for numerous reasons. Those reasons are: the earning of cash back, safety, points and frequent-flyer miles, universal acceptance, and to build credit (Investopedia.com). Credit cards can allow for cancelations a payment on a service that did not meet the expectations of the consumer, which is really beneficial. However, consumers own a few too many credit cards that all have different interest rates. The reason credit debt is so astronomical, is because consumers are paying the required minimum payment

According to the U.S. Census Bureau, in 2010 Americans had $866 billion in credit card debt and its still growing. Huge credit card debt is a huge problem for America and putting credit cards into the hands of kids will only cause more difficulty. Also, there are severe consequences for using credit irresponsibly. In fact, kids do not understand finances and credit enough to use credit cards responsibly. For example, kids who use credit cards won't understand the value of money. Therefore, kids under 18 should not be given access to credit cards.

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 government has ensured the money will be repaid through the wage garnishment system. Only a small percentage of consumers endure this process because debt can be collected by numerous means (Arnold). In response, credit debt was virtually non-existent until 1970, now Americans have an average of $3,500. A time used to exist where only the wealthy had access to credit cards, but the credit score industry caused financial companies to feel comfortable with the broadening of credit cards across the population (Indiviglio). Letting consumers purchase those big-ticket items also enables them the ability to spend more holistically. For example, $20 cash is manageable for a few groceries, but a credit card can cover those groceries and a new television simultaneously. Credit cards seem to give consumers an infinite amount of money at their fingertips. After so much debt has risen, creditors resort to the courts. Over a million lawsuits are filed annually concerning credit card debt, which does not seem like a small percentage (Arnold). And through wage garnishment, creditors collect their payment whether the consumer can afford it or not. The consumers should not be treated in this manner for using a credit card in the means that it was distributed for.

Many of our time rely on credit and debit cards when purchasing items. While the two seem identical to one another, failure to know the difference can result in an economic catastrophe on the card owner's part. Debit cards are used as a way to spend money that the consumer already has by withdrawing the purchase amount directly from their account. On the other hand, credit cards allow the card owner to borrow money from the bank, in which the card is issued, up to a certain amount in order to make a purchase which they will pay back to the bank at a later date.

Plastic money is in vogue in today's economy. Paying for what you buy through your credit card is fashionable and convenient. But credit cards are growingly becoming a matter of immense concern thanks to the problem of card debt. The problem of credit card debt arises when consumers buy something swapping their card but are unable to repay the money to the card company within the stipulated time period.

The credit card companies and banks are getting richer, while most Americans are getting more in debt. The economy is in trouble, therefore, more and more people are relying on credit cards. In today’s society we are constantly trying to get out of debt, but in the process of trying to get ourselves out of debt, we create more debt. One of the major problems that most of us are dealing with is credit card debt. Most credit card companies are not looking out for your best interest. They are constantly raising interest rates. Minimum payments are just enough to cover the finance charges. Most Americans should not use credit cards for the following reasons: it will create bad spending habits; you will incur more debt affecting credit

Credit cards can improve the chances of getting house or car loans in the future, can buy things without the exact amount of money at the time, and that the consumers won’t have to carry cash around when they are in a mall or a shopping center.

It is undeniable that the advent of plastic money has improved and made huge changes in the way business is being run in the world. It has given customers many benefits and convenience. It has become a necessity but the other side of the coin is the plastic money is coupled with setbacks like drowning card holders in debts which results from unplanned spending.

In the modern world we live in today, technology has been making our lives easy for as long as we can remember. When an average American stands at the cash register to pay, they are likely to pull out some form of cards such as Visa, American Express, Master card, Capital one or Discover card. All this card mentioned are all called Credit cards. Credit Cards seems to be easy and fast way to pay for purchases when you don’t have cash. Most stores in the United States do not accept check, they prefer cash or credit cards. Although, there are so many positive reasons to own a credit card, it can also cause many problems if one isn 't wise with making sending. One main reason why people set up businesses is with the sole aim of making profit. Credit Card companies must make profit to help the company provide money to their customers. To do this, these companies have set up many ways to squeeze money extra money from their customers. They designed ways such as charging late fees and inactive fees to make money. As a result of this, many people find themselves in huge debt. With this intention, government have to find a way to prevent people from getting into debt. They developed an amendment that would prevent credit card companies from squeezing extra money from their customers. On May 22, President Barack Obama signed the Credit Card Accountability, Responsibility and Disclosure Act of 2009 into law.The Credit Card Act of 2006 deals with the limitations of fees such as the