The Dangers Of Credit Cards

Credit cards have become increasingly popular world-wide, making it easier to buy now and pay later but are they actually helping or hindering someone’s credit? “Maxed Out” by James D. Scurlock demonstrates how credit cards can hurt someone’s credit, while “Why Won’t Anyone give Me a Credit Card” by Kevin O’Donnell demonstrates how someone may have financial stability to pay off a credit card, but still be consistently denied one by the credit card companies. Owning credit cards is not the problem; the problem is being irresponsible with it.

The purpose of usury laws was to regulate the maximum interest rates of loans. This law was created to protect borrowers from excessively high interest rates. It insured that lenders could not put the borrower in a situation where they were not able to fully pay off their debt. However, as said on investopedia.com, “In the United States, individual states are responsible for setting their own usury laws.”

I the article, “The Credit Card Company Made Me Do It!” -The Credit Card Industry’s Role in Causing Student Debt” by Carlos Macias. What Carlos writes about is how much College students go in debt when they use credit cards. He talks about how credit card companies prey on students who are in college because they don’t know what how to handle a credit card. He wrote in the article, that the industry makes billions of dollars in profits, and many students are drawn in by the advertising credit card companies use to make college students feel like its easy for anyone to own a credit card. He even said students may even feel pressure from family, peers, and themselves to be responsible adults and try not to live off their parents. Carlos also

In the article “What Drives Credit Card Debt?” Amy Traub correlates credit card debt to several different variables. One of the major variables referenced was the absence of health care. In 2012, a national survey of 1,997 working age adults was conducted and the outcome was extremely surprising. According to this survey if a family does not have health care they are 20 percent more likely to be carrying credit card debt. (Traub) Another variable tested was if the household was ever unemployed. Studies show that even if the person was unemployed for a short period of time they are 14% more likely to carry credit card debt. However, if you are lucky to have assets to draw from you are less lucky to have credit card debt. Many different factors

What selection of services do you really offer? Would it meet my credit card debt relief needs?

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

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.

Ever since a consumer could purchase goods or services with a plastic card, there has been complications. Credit cards have a few positives, but the risks heavily outweigh the good. Americans owe a combined 12 trillion dollars’ worth of credit card debt (John Oliver, 2016). The average household in the United Sates owes around $5,700 (valuepenguin.com). Debt should not be something new for American consumers since they already deal with student loan, automobile, and mortgage debt. Since credit card debt is so prevalent, debt buyers and other loan rewarding companies have become a mean for paying off debt for some consumers. The Federal Trade Commission only provides information regarding debt and also strategies on how to pay off debt. The government only has a few programs that helps a particular group help combat debt. Many American consumers can only turn to themselves, debt buyers, and various agencies to help erase the burdens credit card debt.

The stories of people’s lives ruined because of either ignoring or poorly managing their debt is common and are heart breaking. I did not know about this reality until I took Financial Management, and I know to use them not for recreational uses, but for emergencies. Have a relative that needs an operation? Use a credit card to pay it off quick, but remember to pay as much as possible for the monthly plan or else you will be paying more than you spent. Being careful is not a prominent trait for most teenagers. It is the stage of life where they want to experiment and try anything without thinking of the consequences, like impulse buying. Just knowing the possible outcomes for using a credit card would prevent some people from ruining their life from credit card

Beautiful home, luxury cars, two and half kids; this is what people feel life should be. Well for most, they will never experience this because of bad credit. Credit is what allows most middle class and lower class families to afford nice things. It allows you to make purchases for large items with affordable monthly payments over a specified time. Of course income is an important part of the credit allowed per household. If you only make $25,000.00 a year, you might not get a Mercedes C-Class but more like a Ford Focus. There is absolutely nothing wrong with a Ford Focus, it’s all about getting what you can afford. Then there are those who make twice that amount and still can’t get anything other than a Ford Focus. Those are the people who have abused their credit and now are in the “rebuilding” stage. Let’s go over some tips to prevent you from having to restore but make wise choices so that you have a prosperous future.

Many percentages are based on minimal payments. The goal with any credit card is to make sure that you pay more than what is owed as a minimum payment, this way less interest is paid and you are paying off your debt, and not just prolonging it.

One day you get up and do your normal routine. You let the dog out to do his business, you brush your teeth, brush your hair and get dressed. You let the dog in and walk into your kitchen. You feed the dog then make yourself something for breakfast. The dog lays on the couch without eating. Not thinking anything of it, you watch TV and throw a load of laundry in the washer. Noon comes around and still the dog is just lying there, sleeping. You check the bowl of food and notice it hasn’t been touched. You wonder why but disregard concern for the time being. You run errands in town then return home to the dog that still hasn’t moved or eaten a bite. It’s now 4pm and concern kicks in! The dog jumps up for the first time today, but not to eat. Instead he runs over toward the door and throws up. At this point you have no doubt something is wrong. You rush the dog into the veterinarian hospital to get him checked. Only after being there a few moments long you’re told the dog has the Parvo Virus! The first thought when discussing how to save the dog’s life is “I’ll do whatever it takes”. You’re second thought is money! The amount of money to save his life is more then you have in the bank. What are going to do? Little did you know there is a solution! It’s called Care Credit and it will cover all expenses, all you have to do is pay it back in small payments until paid in full. At the time yes this sounds like the perfect solution but what you’re not told is

Firstly, not using credit card is the utmost issue which needs avoiding in order to be rich in the future. As regards credit cards, there are billions of people using it around the world. The purpose of credit card is for convenience, that the owner of the credit card can spend money at any time without handing cashes, which attract many thieves and criminals in busy places. Furthermore, it is not necessary for the credit cards owners to have actual budgets of money to purchase goods and services, for they can borrow loan through the card and pay the lender later. In my opinion, I think it is very good to fulfill my wants immediately before having enough money to afford it, yet in return for the comforts which a credit card fetches me, I have accumulated a fortune of debts. The debt may be dismal, thus extraneous to raise the credit

One of the first rules in using a card is to use credit instead of debit. What people don't know is that credit cards offer a higher consumer protection against fraud. What makes it better is that many of them come with zero-liability

Money is a necessity in life and is a constant worry for college students especially when you take out a $10,000 loan. Financial aid has replaced studying as the biggest worry for college students. The objective of college is to learn and grow as a person, but is limited by financial capabilities which is a big problem for the U.S. education system and prices continue to go up. Main focus is having to focus on rigorous studying, students may also have to work to stay in school. A student is paying college through a $10,000 loan and working a part time job 20 hours a week. John wonders if getting a credit card will help him financially. The best solution is to attain a credit card that has student benefits included and will make it easier to protect and keep track of your money.