Credit Cards
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Debt is like quicksand, once you reach a certain point, it is practically futile to try and get yourself out of it. Transition from debt to credit cards (they’re the path way out of quicksand). There may be a few positives to credit cards, but much of it is negative. It is a way for banks and other lenders to prey on a consumer, especially incompetent younger adults who are not educated on the subject. The thought of having money whenever wanted can be attractive, but that comes at a price.
According to statistics from a debt analysis website, credit card debt compared to other debt is the lowest priced among consumers. This is true because banks and lenders offer forgiveness to those who cannot pay off their debts. So, is credit card debt not a big deal? The answer is that banks and businesses try to trick consumers by comparing credit card debt to much larger debt such as student loans, house mortgage and auto debts. This can make credit card debt deceiving; making it look like credit card debt is not a factor you should be concerned about. All of those things are necessities of life, while credit cards are a want. You need a roof over
your head; you don’t need a credit card to get through everyday life or to be successful.
Most aspects of credit cards are negative; however, it can come with some benefits. As some people may argue, having a credit card isn’t all downhill. Spending earns you points and a reward says our former teacher Mr. Bellinger. It can also be used as a financial crutch during hard financial times. Being financially responsible can earn you a good credit score for getting loans at lower interest rates. However, credit cards are like a boomerang; you think it’s all fun and games until it comes right back at you.
Establishments that give out rewards are in it for a profit. In a perfect world everyone pays their debts off on time, but that’s not always the case. Many consumers continue to swipe their credit cards thinking that it is just extra cash in their pockets or they lose track of how much money they are actually spending. The loaning institutions take advantage of that by giving that consumer a high compounding interest rate. But these interest rates can be so high that the consumer will never have a chance to pay off their debt. They just keep digging themselves into a deeper hole.