Most Americans Should Not Use Credit Cards
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- Date Submitted: 01/15/2012 03:06 PM
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Most Americans Should Not Use Credit Cards
Sherrie Y. Saunders
Com/156
Deena Martin
12/05/2010
Credit card use has given individuals the ability to live out of their income bracket and it
is the largest issue with debt in this recession. In my personal opinion I believe that people should purchase small ticket items with cash and leave the credit cards for large ticketed items and emergency purchases only. In my experience with credit cards, I have gotten myself into almost $20,000 in credit card debt because when I did not have cash to purchase items that I wanted then I would pull out my cards and start swiping away. As long as I made minimum payments on my monthly bills the creditors had no issues with approving my purchases. I was buying items that I would not normally purchase if I had to pay cash for them. I started to live beyond my means and I use more than half my income repaying debt. The other issue I have with using credit cards is that a few times I paid my credit card bill late for simple reasons and the creditor raised my interest rate from six percent to an unreasonable twenty six percent. Rate increases also make it hard for repayment of credit card debt.
Are you or someone you know a victim of credit card debt? “The statistics tell the tale.
According to Equifax Inc. (EFX), a credit cards analysis firm, people have been buying more
with their credit cards but paying down less. As a result, average balances jumped nearly 9% in
2007 and delinquency rates recently hit a four-year high of 4.5%.” (Tardiff, 2010) Many people think that becoming overwhelmed with credit card debt cannot happen to them but they are sadly mistaken. Earning credibility and acquiring a high credit score is important to obtain high end purchases when wanting or needing them. Owning credit cards and using them wisely will help build good criteria with lenders hence gaining some financial stability; however, if not careful the...
Sherrie Y. Saunders
Com/156
Deena Martin
12/05/2010
Credit card use has given individuals the ability to live out of their income bracket and it
is the largest issue with debt in this recession. In my personal opinion I believe that people should purchase small ticket items with cash and leave the credit cards for large ticketed items and emergency purchases only. In my experience with credit cards, I have gotten myself into almost $20,000 in credit card debt because when I did not have cash to purchase items that I wanted then I would pull out my cards and start swiping away. As long as I made minimum payments on my monthly bills the creditors had no issues with approving my purchases. I was buying items that I would not normally purchase if I had to pay cash for them. I started to live beyond my means and I use more than half my income repaying debt. The other issue I have with using credit cards is that a few times I paid my credit card bill late for simple reasons and the creditor raised my interest rate from six percent to an unreasonable twenty six percent. Rate increases also make it hard for repayment of credit card debt.
Are you or someone you know a victim of credit card debt? “The statistics tell the tale.
According to Equifax Inc. (EFX), a credit cards analysis firm, people have been buying more
with their credit cards but paying down less. As a result, average balances jumped nearly 9% in
2007 and delinquency rates recently hit a four-year high of 4.5%.” (Tardiff, 2010) Many people think that becoming overwhelmed with credit card debt cannot happen to them but they are sadly mistaken. Earning credibility and acquiring a high credit score is important to obtain high end purchases when wanting or needing them. Owning credit cards and using them wisely will help build good criteria with lenders hence gaining some financial stability; however, if not careful the...