Why is there an attitude that credit cards are OK?

Question

Most credit card companies are snakes and prey on the stupid and poor. What happened to paying your debts, or even better paying in cash? Are Americans so swayed by advertising of these credit card companies? Do we really worry about whats in our wallets (Capital One) besides CASH.

About 80% of people DO NOT pay their balances off every month.

Answer 1

Yes they are bad, However if you pay on time then you get a few days grace before you have to pay for the item you buy. Cash is te best thing if you have overspending problems.

Answer 2

Credit cards are immediate gratification. Credit cards give you a way to have something NOW without having to save and wait. It's a very seductive offer, and it's not easy to figure out the consequences. People don't always realize that if they only pay their minimum payment each month, they could end up paying far more in interest than they spent on their original purchase.

Take an example: You go out to dinner every week on Friday nights and spend $40 on food & drinks. (not so hard - a $4 appetizer, $15 main course, $4 dessert and a couple of $5 drinks plus tax and tip. You put it all on your credit card. At the end of a year, you've spent $2080. Now you start to pay it off.

If your credit card reflects the national average, your minimum payment 2% of your outstanding balance and your interest rate is 18% per year. If you only pay your minimum balance, it will be MORE THAN 31 YEARS before you're completely paid off, and you will have paid $5,171.13 in INTEREST ALONE.

The link below is a payment calculator; you can see payoff times and interest costs for other credit cards with different minimum payments and interest rates.

Answer 3

It's a question of economic literacy. People just don't know how to use them. Yes Credit Cards companies are extremely bad at targeting the poor and stupid, but I think if people know more about these financial instruments, they will make smarter and better choices. I know in Canada, the rate for people not paying their entire balance in a month is 26%. I also remember in Elementary and Junior high in Alberta, we had finance classes in our "Health" classes and we learnt how Credit cards, chequing, savings account etc. work.

I almost only use Credit cards. Because I pay my entire balance off, and I mostly purchase things for my needs (University rent, groceries, utilities etc.) I practically get an interest free loan, and free rewards. People just have to get discipline in having a card. For wants, I use cash or I deposit money I spend on wants at the ATM and then use the same amount on the credit card.

Answer 4

I think credit card co's are the lowest. Having said that, there is no such thing as a bad credit card only bad credit users. If you don't have the self control to use it wisely, you are asking for trouble. Paying off the minimum each month will get you nowhere, read up on some of the debt reduction sites how the co's take advantage. The bottom line is they can only do that if you allow them.

Answer 5

Credit cards are not necessarily good or bad but in the electronic age we live in, it's often necessary to have one. Cash is going away eventually as it's simply not an efficient means of holding value. Whether you use a credit card, debit card, smart card etc isn't the issue it's how you use them that matters. People stupid enough to carry a balance on a credit card because they bought something they couldn't afford should blame themslves not the credit card companies...don't get me wrong.I agree that credit card companies are snakes and in in my view very unethical at how they market them but at the end of the day if you're stupid enough to let them take advantage of you....well then I think you get what you deserve.

Answer 6

Credit cards are handy when you want to do something like buy plane tickets or reserve hotel rooms or rent a car, so they do serve a legitimate purpose. But you're right -- credit companies are handing out way too many cards to people they shouldn't be handing them out to. There was a time when it was like pulling teeth to get a credit card, and back then people who had them used them sparingly and paid them off in full every month. Not any more. I think it's eventually going to bite the credit companies on their collective @$$es though. P.S.: I have a couple of credit cards but I pay them off every month.

Answer 7

Why do you care if people have credit cards. And just because someone has a credit card doesnt mean they dont pay their debt...

Im 25 & i have had credit cards since i was 18...It has helped build my credit. Usually when I charge something I pay it off within 3 months.

My credit score is a 760...whats yours? If I didnt pay my debt would it be that high? NO it wouldnt. Nor would it be that high if I never had credit cards.

I do think credit cards get alot of people in trouble, you just have to be reasonable & responsible when it comes to using them!

Answer 8

Credit Cards are ok but like most things moderation is the key. Credit Cards will ruin your finances and your life if you do not use in moderation. Any one with little or no self control should avoid credit cards. Paying you credit card debt is like paying any other bill. Unfortunately, some people use bad judgement.

Answer 9

Yes many just can't wait and got to have it now. For many its not the cost its what it is by the month. Gosh can you imagine paying for 10 years on a vehicle as some loans are now or the "Gap" insurance where you pay extra premium so that when you trade your gap insurance makes up the difference?

Listen to or go to websites of Daveramsey.com or Clarkhoward.com for good financial advise...

Answer 10

you're overextended. BoA replaced into interior this is rights to close the debts to guard themselves and, in a experience, to guard you from digging your hollow deeper. It appears like you're making all of your funds and paying on time. this is sweet. It means that the in elementary words element having a adverse impact on your credit is the quantity of your debt. Now, the questions are no matter if you could proceed to pay off the debts you've previous the minimum charge and no matter if you could stay without get admission to to credit. If the answer isn't any, CCCS is unquestionably one in each and every of the answer. financial ruin looks overkill at this element. I favor you luck.