CREDIT CARD CONS

Why Most Americans Should Not Use Credit Cards?

Why Most Americans Should Not Use Credit Cards?

Thesis Statement

Debit card or plain old cash is much better than credit cards

Introduction

No discussion of credit woes in the U.S. economy is comprehensive devoid of a furious fire warfare between those who think the government must stop "predatory" lenders from taking unjust benefits of borrowers, and those who deem that borrowers who could not give what they owe are shattered who justify to be openly mocked, if not chained up and thrown straight into debtors' jail.

For many of us, it is very thorny to imagine a credit-free life. Credit has become a part of our culture and society. Our society has made borrowing the money so simple in order to entice people into purchases which they otherwise would not afford. There is no second thought that credit cards have provided people with ease in carrying out their day to day transactions. But the fact remains that use of this debt has done more harm to the finance of American that use a credit card than help that credit card provided. Use of credit cards has become a major problem in the lives of Americans. There are cases that students commit suicide as they trapped in excessive debt that they owe to the credit card companies (Manning 2000). One bad aspect of using the credit card is that it makes money look as it were virtual; the people never realizes the amounts of money they are spending, but if they pay it by cash they will be aware of their spending habits. This is one f the basic explanation why credit card users are generous spenders. A question then arises that, should Americans terminate their credit card usage? The answer is definitely yes, as the detriments of credit card outweighs the gains.

Discussion

A credit card is design to provide ease in paying for goods and services. However, people who struggle to pay their household bills treat is as a long term borrowing source. People are surrounded by too many advertisements that it entices them to increase their spending beyond what they actually afford. Many credit card companies provide their customers with extended credit while at the same time increasing the interest rates on all those balances. Many people trap in the net of elevating interest expenses along with the unaffordable principal amount which let their account go negative. This becomes a cycle every month and more debt being loaded on the card holder. This can get so much out of customers' hand that they then have to start selling their property or sometime it even leads to bankruptcy.

Most of the credit card companies exert exorbitant charges in using their credit cards. Credit card companies do not only charge for the use and withdrawals of money but they also charge their customers on maintenance and other charges, even when these cards have not been used. Companies and banks impose severe duties on the card ...