Personal Note On Credit Cards

In today’s world most people have a credit card by the time they turn eighteen years old. Nerd Walt, a financial website, stated “Average credit card debt in 2013 reached $15,480 per household in the United States”. (Bower) The average household credit card debt has probably increase since the 2013 study. “Overall U.S. National debt is rapidly approaching $18 trillion” (Bower). “20% of credit card users often pay off monthly balances on two or more credit cards” according to a study (Bower). In today’s society it is normal to swipe a credit card to buy your children Christmas, because credit card companies now offer rewards where an individual receives money back or maybe even a discount flight. People used to not want to buy their children’s Christmas on credit, but rather work a little harder and save up the money to buy it. Children now days see their parents buying them stuff on credit card, so when they become teenagers they expect to receive everything they want even if their parents cannot afford it. When the child becomes a teenager, and they are finally old enough to get a credit card they take advantage of the credit card. Young adults should learn to spend their money wisely and efficiently at that age.

Credit cards are often used to borrow money to pay for items that they could not afford without them.The benefit of having credit cards is receiving good credit, which can lead one to have many opportunities in the future as it looks good on their resume. However, on the downside, many companies who create credit cards may take advantage of their consumers in many ways. This creates financial difficulties for Americans, which results in the need for government assistance. During 2009, President Barack Obama created a law named the 2009 Credit Card Accountability Responsibility and Disclosure Act, which restricted credit card companies in many aspects. Barack Obama’s presidential decision in limiting deceitful policies and excessive fees, made by credit card companies was a good one because it was beneficial to society in the long term by limiting corrupt companies, by protecting minors, and by restricting difficulties for consumers regarding gift cards.

Once payment in full was received, the consumer took the goods home. Thus, if the consumer did not have the money, they could not purchase the goods. However, during the boom of the late 1990s the number of households with a credit card was significantly higher. In 1998 the number reached 68% (Durkin, 2000). By the late 1990’s, any college kid with the hope of becoming an educated contributor to the workforce could get a credit card with at least a $1000 limit. Personally, my first credit card had a $1000 limit and did not require my parents to co-sign. I got it in 1996 as a freshman in college.

But why? Why are millennials so scared of credit and opting for debit cards instead? More importantly, what are the consequences of living without a credit card?

A tactic used by credit card companies in the past would be to bombard students with attractive offers as soon as they turn eighteen. Additionally, these companies often downplay or hide the terms that consist of high fees or increasing interest rates after the first 6 months. For example, Bank of America recently settled a lawsuit for deceiving customers and charging them for services they did not sign up for when acquiring a credit card-- Bank of America ultimately reimbursed customers over 66 million dollars (Douglas). Financial literacy classes would teach students to be wary of these hidden fees or conditions and to do their due diligence before signing up for a credit card, potentially saving them from unnecessary debt and stress. More recently, credit cards will require a parent to co-sign for young students and will cap the amount of the money they may put on the card, thankfully protecting the student-- and the credit card company. Should a student acquire a credit card to build their credit, they should use a secured credit card which requires a down-payment which will be held for the life of the account, and allows the cardholder to only spend up to that amount. Personal finance classes would teach students the responsibilities that come with a credit card and what to look for when signing up for

5. The advice I can give concerning the use of credit cards and the fees they charge would you provide to a young adult planning on getting a credit card I would tell them that credit cards is good to have for emergencies (ask ville2013). Most teens manage to get through those years without permanent damage. If they don't, it is generally because of three things: addiction to tobacco, substance abuse or alcoholism and misuse of credit cards (ask ville2013). In my conclusion many credit card companies are targeting the consumers with not so good credit and offering their rates so high that it will take those years to pay the balance off. Consumers should only use credit cards for emergency purposes only. Also consumers should also think about paying off the interest off early as possible. For routine purchases you can use a debit card, which draws money directly out of your checking account. When there is no more money, the card stops working.

The advantages of credit cards are countless. With credit cards, an immediate purchase for an expensive Macbook Pro is possible without obtaining enough money (Sandberg). Secondly, if a job is lost, one can live off credit cards (Yuille, “Pros And Cons”). Additionally, even with enough money, there is no

As well as spending too much money, people are also being attacked by non-reliable websites. Giving out personal credit card information is very unsafe, especially if the person has no idea who they are giving it to. Shoppers have periodically bought items they have never received, and they have no way of getting their money back. Furthermore, the person who runs the scam website now has the shopper’s credit card information. This is an easy way for shoppers to fall

Credit cards are like the most important element in our daily life at the present time. Many of us have credit cards. In fact, there is no wonder that why these cards are so much relevant in our present life. Credit cards have made our life easier and trouble-free as we can use them at any place. From hotel booking to air travel, you can utilize these credit cards as an important asset.

Waggoner (2005) explains that young adults in America are using credit cards as a quick fix to cover monthly expenses. Credit card users in the 18 - 24 age range spend about one third of their income on debt and credit card users in the 25 - 34 age range spend about one fourth of their income on debt. Although these age groups of people are high-risk, credit card companies are competitive and still issue credit to them.

Ever since man first walked on earth, goods and services were traded throughout the world. Individuals needed a way to buy these goods and services. Before the “Apple Pay”, “Samsung Pay”, and all the other new technological advancements, “there were goods and services, bartering, animals, food, exchange and agreements for work”(Yahoo). As time went by, we started to see the evolution of the coins which lead to the invention of the paper currency or cash. With the advancement in paper currency, individuals needed a place to store the large amounts of money while also keeping their money safe from harm. This caused the establishment of banks all around the world. These banks weren’t that safe as it is today, but what other choice did individuals have in protecting their money. As time went on, individuals needed a way to get money fast and stress free. Credit cards came in as a solution to that problem. On the positive side, credit cards are a way for individuals to keep their money safe; the advancement in technology helps credit cards become more and more intelligent and safe, and they prevent the individuals from losing their cash or having it stolen. But on the negative side, technology has its dangers that make the utilization of credit cards problematic, such as: careless spending, theft, and scams are some of the ways individuals lose money or land in credit card debt. Finally, the individual must decide if the use of a credit cards and its benefits is damaged by the

Building one’s credit is a lot easier said than done, and while credit cards can be a good solution to this problem, they can also be a burden if one is not careful when using them. Not only can it be detrimental to one’s financial budget but it can leave a huge impact on a College student who is already in debt from financing their college tuition and living expenses. Entering into College students are not incredibly aware of how credit cards actually work and don’t have the financial background to understand the repercussions that credit card debt can bring. Which in turn can result in high credit card balances that will take a sizeable amount of time to pay off. Not only does this affect the students financially but in other ways as well. For example, the dropout rate in students with higher debt is a great deal higher than students with low, or no credit card debt (Norvilitis 635). Research has also shown that it creates a lower self-esteem and a decreased feeling of financial wellbeing which can create higher stress levels which can result in the eventual drop out of a student due to the additional stress (Norvilitis 635). With this being said, we can see that there is a need for some type of reform and education around credit cards for College students. Hence, we can say that while credit cards are a great way to help build credit, they can also be very dangerous, leaving students with an enormous amount of debt if they are not careful, could education on the use of

What are the reasons that explain the fast increase of the use of the credit cards? As one reason that might explain the phenomenon, some people may think that carrying a credit card is much easier than having cash or a checkbook in their wallets or purses. There is no doubt that the "plastic money" doesn't bother in a wallet or a purse because of its tiny size.

I’ve always been fascinated on how popular culture glorifies credit cards. What fascinates me about credit cards the most is that they are so powerful that they can turn you life around and help you live the life you had always dreamed of. Credit cards appear to be an insignificant piece of plastic, but they are more powerful that what they appear to be. Owning a credit card opens up doors to different worlds, especially when you own more than one credit card. Marketers always announce the glories, convenience, and safety issues of owning a credit card, but what they never tell you is that you must be vigilant on how you use your credit card/s because you may end up stuck in a world you wish you had never entered in which your dreams all

The concept and use of credit cards is looked upon with disdain often by many individuals born prior to or around the early 1960s. According to the CreditCards.com website, the first credit cards were introduced to the U.S. around the 1940s and were primarily issued by large department stores. The grandfather to the modern day credit card is thought to be a Diner’s Club Credit card and was originally developed as an alternative to those who didn’t want to carry cash all the time, while still being able to enjoy travel and entertainment activities. While many people in