What are three reasons young adults should avoid credit cards (debt)?

Question

I am doing this for a speech class.

Answer 1

Avoid credit cards (debt)
Because
(1) By temptation one purchases unwanted substances.
(2) It produces negative effect on long term planning.
(3) Negotiating power is reduced, because easy money is available.

Answer 2

Hmmm...

1. Young adults who get credit cards don't learn proper discipline with money -- instead of saving up for the things they want (and thereby appreciating how much work it takes to get stuff) they go out and put it on credit. Instant gratification is NOT always a good thing. Many young people who have credit cards also have a bad habit of not putting money aside in savings for emergencies or "a rainy day."

2. They end up paying a lot more for something than it's worth -- most credit cards have interest rates around 18%, and if you were to buy $5,000.00 worth of furniture on credit at that interest rate and made the minimum payment every month, you'd end up paying over twice what the furniture originally cost when all is said and done.

3. They can get into credit trouble very quickly -- Most people who have credit cards don't use them and pay them off every month; they charge them up until they've reached their limit and just make the minimum payment. And many people keep getting more and more credit cards and charging them up. Keep doing that and you get to the point where you're in over your head and your credit rating is ruined (and you may even have to declare bankruptcy if you go too far).

Does that help?

Answer 3

When you have credit card debt, you become a slave to debt. If I charge anything to a credit card, I pay it off that month. I have been doing this for over 30 years. I am now retired and owe no one anything. It is a very liberating and free feeling to be debt free. It relieves much stress!!! This is a choice that a person must make. Think carefully before purchasing something that you cannot afford. It is really best just to pay cash. Think about this since you are just starting to make major decisions.
Good luck with your speech!!!

Answer 4

1) Interest rates. Companies may start you off at a very high interest rate until you prove yourself credit worthy.
2) High card limits. Companies may give you a higher limit than what you can actually handle and before you even realize it, you are in over your head with a high debt and a high interest rate.
3) Ridiculous grace periods. Beware of companies that give you grace periods of 15 to 20 days because your payment due day fluctuates and it makes it very difficult if you have to budget and/or carry a balance.
4) Crazy high fees and crazy rules. You go over your limit and you get billed an over the limit fee of $30 to $40. Because you are over your limit, you have to pay both your regular payment AND the amount that you are over. If you don't pay it all, you get an late payment fee. If this happens x-number of times within x-time frame, they raise your interest rate. It's a vicious cycle.

Answer 5

yes