Why do people believe Credit Cards are necessary?

Question

Why should we all live in debt and pay high interest? Why can we not act our wage and spend less that what we earn? Will we change and what will the consequenses of our debt-riddle life styles be? Is it worth all the stress?

Answer 1

Credit cards came about because businesses that extended credit to their customers were going under. Too much bad debt. They couldn't do it anymore so they started refusing credit.

The individual banks DID take on some of the risk for car repairs and large amounts, but they weren't interested in little amounts so the credit card companies were born to fill the need.

Over the years people have gone from using credit cards for serious emergencies to every little thing. The credit card companies want it this way because that's how they make money and that's how people get in trouble.

Of course, the people who get in trouble do eventually cut up their credit cards and get out of them. Most learn to use borrowing for genuine emergencies like car trouble or doctor visits.

By the way, payday loan places arose for the same reason credit card companies did. People had emergencies and no money to cover them and the individual businesses couldn't extend credit. So long as people use them for emergencies and only for emergencies, they are an acceptable alternative to credit card companies because the rates are lower.

Answer 2

Why do people not save anymore. You list Credit Cards as an emergency blanket. Why not just save up an emergency fund of like 6 months of expenses. Then the car breaking down or a doctor visit isn't a big deal.
And for big purchases...same thing save. Why not pay for it on the front end by saving instead of paying for it and the interest on the back end through a credit card.
Online you can use a debit card, and most every account has the same safe guards as a CC. And a debit card with a Visa or MC logo is used anywhere a CC is.
Your wealthy, truley wealthy don;t believe in credit cards. Warnign against credit card debt was one thing that Warren Buffet said he would warn our youth about. Think of all the interest you have and will pay becasue you aren;lt willing to cut your lifestyle and live within your means. Your stuff you cannot save for, your "emergency blankets" are keeping you from becoming wealthy.

Answer 3

They aren't neccessary if you live within your means. Saving money to buy something you want is a foreign concept to most people these days.
They are good for emergencies though. Years ago I was robbed in Mexico by the local police of most of my cash and didn't have a credit card. I tried to go home 3 days early because I was almost broke but was told I couldn't get a flight out until my regular reservation. I had to check out of the hotel I was in and into some flea-bag place. Could hardly afford to eat and caught Montezuma's revenge as a result. If I had a credit card at that time I could have charged my expenses and not gotten sick.

Answer 4

Credit cards can help when you are in a jam, like say your car breaks down, and you don't have the cash to pay the repairman. They are also useful when you are planning a big purchase you want to make payments for, instead of paying for it out-right.

Unfortunately, too many people don't understand how credit works, and end up deep into debt.

Answer 5

I don't have s ingle credit card, not even a bank card.
I withdraw the money I need for the week (I do go back if I need to) and then spend it.
If I can't buy it with cash then I don't need to buy it and can live without it.
Of course I did get a loanf or my car, but I am paying that off with my tax return so that I don't have payments.
I like to make sure that I don't put myself in debt just because they send me "pre-approved" credit card offers.
I jsut shred them and forget about them

Answer 6

you want to apply credit to construct a credit historic past. in case you have not the different kinds of loans, like a motor vehicle personal loan or a house loan, then you definitely many times opt for a mastercard to construct your credit historic past. you should purchase inspite of you opt for with it, besides the undeniable fact that a thanks to construct a sturdy good credit historic past and in no way become in debt from using a mastercard, you should in reality purchase what you would possibly want to in the different case purchase with money and pay the bill in complete each month even as it truly is obtainable in the mail. After doing that for decades, you may have an outstanding credit status. be careful that you do not enable the soundness to proceed to advance. Pay the soundness off each and anytime you get a reality.

Answer 7

With the Internet changing the way we do business, credit cards certainly won't go away anytime soon.People feel credit cards are necessary in order to establish their credit history. For the majority of people, their income is never enough.

Answer 8

To build credit. I had my card since I was 18, I always paid the balance in full, every month, on time. Because of this I now have an "excellent" credit score and credit report. And yes, the key is to spend less than what you earn.

Answer 9

It can save you money when doing purchases on line. Make sure you limit your liability to protect against identity theft and just use it in emergencies. It's like safety jacket when boating; hopefully you will never need it, but if you do you will at least have the opportunity to take it off.

Act your wage...that's a good one.

Answer 10

I'd go w/a debit card at least....alot of places want a debit/credit card for reservations...etc.

The promise of a credit card is at least it can help bump up your credit score if you use it correctly. By correctly I mean pay in full every month.