The Negative Effects 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.

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

It is imperative that young adults comprehend the facets of obtaining and maintaining proper credit in order to sustain a sound credit history. For example, the most widely used credit score is Fair Isaac Corp.'s FICO score, which ranges from 300 to 850. A FICO score of 760 or higher reveals an individual’s respectable borrowing power, for even a recently reported late payment can have a substantial effect on a credit score (Holmes). In addition, young adults can learn the importance of securing proper credit and increase their attractiveness in lender’s eyes by aiming to use less than 20% of one’s available credit (“Get”). Since lenders pay close attention to the amount owed on credit cards relative to the limits provided, lenders are able

On a periodic basis, the Federal reserve releases key statistics related to credit card debt in America. With almost 2,000,000,000 credit cards in use while in the hands of almost 200,000,000 individual credit card holders, there is no denying the popularity of these little pieces of plastic. Through May of 2015, Americans were responsible for $901 billion in credit

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.

The holidays can also be a good time to go ahead and use a card you have specifically for the purpose of building up your credit score. For example, spending around one hundred dollars, then paying it off promptly. You don't have to worry about an extra monthly payment or the added interest, but keeping the card active helps you establish yourself as a responsible card holder.

However, they are extremely controversial. People tend to have extremely strong opinions about credit cards. On one side, we have those who vehemently criticize credit cards as the modern evil that has brought financial ruin to so many Americans. At the other extreme, we have those who see credit cards necessary instruments for establishing and improving one's credit history and for learning financial restraint ("Credit cards," n.d.). So, which side is correct? Do credit cards spell financial doom or are they a useful and valuable tool in our society today? In order for us to honestly answer these questions, we must fully understand the advantages and disadvantages of credit cards. First, think about some of the possible advantages of having credit cards. The first thing that comes to my mind is convenience. Credit cards are so tiny that they can easily fit in your pocket. Also, most places readily take credit cards these days. And we cannot forget that credit cards can minimize our need to count money at the cash register or to wait to buy that must-have product until we get our next paycheck. Therefore, it is accurate to say that credit cards are relatively "convenient to carry and use" ("Credit cards," n.d., Pros section). Moreover, credit cards are accepted in quite a number of foreign nations, making traveling or online purchases a whole lot simpler. Credit cards also give you much more peace

Whilst a critical part of consumer spending, credit card companies are constantly accused of malicious legal contracts and schemes to increase profits. Without heavy regulation, these companies have the power to bankrupt millions of Americans that rely on credit cards in their daily lives. However, after the introduction of The Credit Card Act of 2009, these accusations represent an inability to accept responsibility for financial blunders on the consumer’s behalf. Due largely in part to the government’s strict regulations, credit card companies should not be at fault for the student credit card debt crisis. Credit card companies remain blameless for student credit card debt as a result of

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.

Consumer debt has increased by 10 percent over the past three-year period. Credit cards are readily available from multiple companies which solicited the consumer by mail, internet, school campuses etc. Applications require minimal information giving the consumer hundreds or even thousands of dollars in minutes, causing the consumer to live beyond their means. Offering zero percent interest rates however, not mentioning after the first year interest rates rise to 21 percent making repayment schedule longer than anticipated.

The silent epidemic sweeping the nation today is credit card abuse. As prices of goods increase faster than average wages, American families slide deeper into debt. In the meantime, the banks are flourishing from their desire to buy now and pay later. It is amazing how a small piece of plastic can be so dangerous. Society today almost requires people to carry credit cards. In my opinion, credit cards are one of America’s family’s most underrated problems.

One is the 10 year payment plan, and if those loans are paid regularly and on time than that will build up someone’s financial credit. When someone has a good credit history, it demonstrates their integrity and their character, which would help them in the future to apply for loans or to get a job. It becomes more and more difficult to establish credit after someone gets out of college. Often the loaners often rely on the history of one's financial credit because it shows what kind of person they are or whether or not they get their payments in on time. In order to rent a car, one would need satisfactory corporate credit in order to purchase where the sellers look at the buyer's credit background to make sure they are eligible to pay for that specific car monthly and to drive to work every day. In order to buy a home or get a job employers or homeowners will look at past credit scores to see if the person they are hiring is very reliable or not. Having a good financial credit often affects people long term, if they save and maintain enough money to sustain themselves, then they would possibly be able to live a successful financial

The Rise of Credit Card Debt: Viewing the Past, Present, and Future of Credit Card Debt

Chapters six and seven are about consumer credit, with a focus on credit cards. I am more hesitant to use credit cards than I am to use a debit card. I know that credit cards and other forms of consumer credit can be useful because it can give me cash immediately. However, can be easy to overuse credit and become indebted. If default occurs, it can lead to bankruptcy and financial ruin for a long period of time. If I will purchase credit, I will get a card with a low APR, but most importantly I will make sure that I pay all bills on time.

In the economic environment of today, although you may not need to use it, having good credit is vital to survival. It positions you as a fiscally responsible person and can help ensure that: