why are people getting in over their heads regarding credit cards?

Question

if you cannot pay it with cash now, do not buy it now. you are only hurting yourself by charging something you cannot afford.

interesting how many responders look to blame anyone else but the person who charges on his/her own card.

Answer 1

It is all about credit.
Would you have the cash to buy a house or some business? I bet not.

Thats when credit comes in and if you have good credit you would be able to get the money to buy a house.

I have 2 credit cards and I manage them well.
I always pay my credit card balance in full before the 30 days ends. I have been offered alot of credit cars but for the moment 2 is enough.

I have money saved up in my bank account but I use my cards. Using my cards builds up my credit so in the future when I take out a loan, the loan will incur a better interest than if i had less better credit.

Credit is just about trust.A good credit tells banks and other financial institutions that you are a trustworthy person and will repay what you borrow.
The credit score is very important.

Roy

Answer 2

Good answers here.

I'll add that Americans are still using their parents ideals of status.

Keeping up with the Jones is a phrase out of the 60's that made a lot of sense in suburbia.

However today we don't know our neighbors! But we are still strapped with the out-moded status ideal. So we need the SUV and the huge house and all of that.

It's a hefty price to pay into the future for comfort in the present.

It's shifting though. Our culture was saturated in the instant satisfaction of impulse buying in WalMart and Target. But now we look around our houses and see "we have too much stuff".

Debit Cards are quickly filling the need we have for instant cash or travel fare.

And credit cards are good for some things ... people just abuse them I believe because of an out-moded sense of status.

Answer 3

Because people like to show off.You could live in trailer park and still have a diamond ring and gold chain and big screen tv with your credit card but the reality is you are too poor to afford these things.So with credit you can act like a showoff but most people are not fooled they can tell you are a loser as soon as you open your mouth.

Answer 4

Usually people who buy material things are trying to compensate for some psychological issue. Think you're ugly? Buy $1000 worth of shoes and at least you'll have pretty feet. That type of thing.

Also, people don't know a whole lot about credit. They need to better educate themselves or they're basically walking around with a weapon they don't know how to use.

Answer 5

I had a credit card once that did this: minimum payment $30.00 each month but total interest each month was $40.00 I was incurring a $10.00 debt each month and was never paying down any of the priciple. I closed this account pronto. Thats how sneaky they are. Never use credit or pay them off.

Answer 6

Just curious....

If I make only 25k a year on my job, would you offer me a line of credit for $10k? Of course not!

Then why are credit card companies so anxious to do it?

I think the credit card companies need to take part of the blame for the high consumer debt.

Answer 7

Maybe because it's so easy to do. If you have to actually hand over cash, you might think a little harder about whether you really want/need the product - handing over plastic doesn't have that same feeling, since you do the same thing whether it's for $1 or $1000.

Answer 8

I agree with that statement but it is much easier to say than do sometimes. If a medical emergency arises, in my case, I did not have $250.00 up front to have the tests needed done. They had to go on my credit card. Yes, I am only hurting myself, but....if I have to have it done, I will just make payments on it.

Answer 9

your right. getting credit cards at first are so easy to get. it sounds good but most get trapped and in financial problems.II cut mine up and vowed never again! You end up paying doiuble with the high interst rates. And it can take years to get your good credit rating back..

Answer 10

Too easy to pay with plastic, When you spent actual dollars you watch the pile diminish. With plastic you rarely take into account how much is being spent and the "I want it and I want it now" mentality can really screw you up