hello everyone ! i have to write a cause and effect paper about using credit card. but have prolem finding the negative effects of credit card. so if you guys have any ideas ..please help me . i also wanted to find the website that they have statistic showing number of debts. thanks a lot if i can have massege ASP...thanks again for you guys heart. it due on thursday.
2006-10-31 15:21:08 · 6 answers · asked by tiennunho 1 in Education & Reference ➔ Homework Help
The negative effects of having a credit card could be described as the following....
Having to pay interest on any overdue amount oweing, some credit cards have very high amounts of interest due (5%-24%) once the card has reached a certain limit. This is extra money the credit card owner then has to pay back on top of the original amount borrowed.
If the credit card amount is overdue and not paid off it could go to a debt collection agency who will constantly phone and write you for the amount to be paid. If this amount is not paid it could affect your long term credit rating for the next 5 -7 years until the total amount due plus interest is paid. This will mean that will not be able to buy other items on credit such as a house, car, boat, other credit cards, bank loans, in store loans and even mobile phone accounts.
Also if your credit card is stolen and used by someone else you could be forced to pay off the amount that they have spent while they were using your card, or credit card number.
Some credit cards have a yearly fee, so even if you don't use the credit card at all you could have to pay just for the convenice of having one. Usually about $40-$55 a year.
There is also the belief that if one has a credit card they are liable to spend more than they normally would, as they don't realise at the time of purchase that they have spent so much. And will therefore have to pay back such a large amount and the interest if the payment can not be made by the card's specified time of a month or 55 days.
To research this correctly try to find details of credit card fees for well known companies and banks online by using a search engine such as google.
2006-10-31 16:12:05 · answer #1 · answered by Netto 2 · 0⤊ 0⤋
The Federal Trade Commision's website has a lot of good info and statistics. There is a good PDF there that tells about potential employers checking credit reports do decide whether to hire someone. That could be a big negative if you carry a lot of credit card debt.
2006-10-31 15:32:43 · answer #2 · answered by FabMom 4 · 0⤊ 0⤋
The negative effects are that the interest rates are high, and if you don't pay the balance in full every month, you just get more and more in debt. A lot of people will charge things because they know that they don't have to pay for it now, and they get into a charge card mentality. Many people end up filing bankruptcy because of credit card debt.
2006-10-31 15:31:54 · answer #3 · answered by Lawgirl 7 · 0⤊ 0⤋
Um...lets see..the negative sides (not that I have experienced them) are when:
1. you miss a payment it hurts your credit score eventually...
2. apr will go up if you miss too many payments
3. you will use the card when you dont have the cash to afford something you necessarly dont need.
it really depends on the person....if you can afford to pay with cash..do not get a credit card...if you need it for emergencys or use for certian things...then get it. But dont get too many...it will get you in more debt than getting a Ph.D or going to Medical School...
check out like the major credit card websites for stats and stuff
2006-10-31 15:35:14 · answer #4 · answered by Katie 2 · 0⤊ 0⤋
I suck at thesis statements yet maximum instructors want you to stay with this stupid format the place you divide your content textile into 3 sections or paragraphs. Then summarize each and each of those paragraphs into one statment that consists of your view or speculation. so which you are able to do some thing like .... "Heroes in memories approximately romance have exceedingly distinctive personalities which could be shown by capacity of Georgio in tale #a million who replaced right into a fierce fighter, James Bond in tale #2 who replaced into continuously with a distinctive female, and Crapoza in tale #3 who waited till finally he replaced into 40 years previous to be with a female."
2016-10-21 01:50:23 · answer #5 · answered by saggio 4 · 0⤊ 0⤋
anyone owing a debt they can't pay can tell you the negative side.
2006-10-31 15:24:07 · answer #6 · answered by childofthefifties 3 · 0⤊ 0⤋