The Three C's of Credit Abuse

Nowadays, the average American carries a $9500 balance on their credit cards. They are paying an average rate of 18.9% interest and will typically take over 25 years to pay off if they continue making the minimum payments.

With all of the dangers of using credit cards and the consistent mismanagement of debt, why do people continue to abuse their credit lines and put themselves in financial bondage? Three reasons: Covetousness, Can’t wait, and Convenience.

Covetousness – Our society focuses on having the best of everything: a new car, a big house, fancy clothes from a designer label, eating out at the hippest restaurants and wearing the biggest, shiniest jewelry. Very few people actually consider living within their income and being content with what they can afford at this time. Purchasing ‘wants’ with credit cards and financing their desires comes as naturally as breathing to most people and is done without a second thought. Typically, people think if they can afford the minimum payments that it is within their budget.

Can’t Wait – Along with coveting items that you can’t afford is wanting them immediately. Our fast-food society says, ‘you deserve this luxury’ and ‘you need this vacation’ because you work hard. We are encouraged to pamper ourselves at any cost—even if it means putting yourself further into debt to pay for it… which means having to work harder and accumulate more stress!

Instead of saving up for a vacation, a new car, new furniture for the living room, we feel that we have to have this stuff now to be happy, and that if we just had [insert overpriced, highly marketed item here] then our lives would be complete and we would feel joy.

Convenience – A lot of people use their credit cards because it is easy to do so. Credit card transactions today are as easy as cash and you don’t have to worry about carrying around a pocket full of change. Today, you can use credit cards nearly everywhere: gas stations, restaurants, grocery stores, coffee houses, and even a lot of fast food restaurants.

The problem, however, is that they are often times too convenient to use and the costs of the things purchases aren’t realized until the bill rolls in the following month and you are studying the statement sure that an error has been made to your account.

Companies know how to market their items successfully. They target our dreams, our fears, and our fantasies. They design their ads and commercials to make us feel like we have to have their product to be able to function as a normal member of society and if we don’t have their product then we will be an outcast, we won’t have any fun, and we will be less of a person.

If you'd like to submit your own article click here!

All information contain within is owned and Copyrighted by PlanaBudget.com ™.
All information is deemed to be accurate but is in no way guaranteed.