Credit Cards - Good Idea - Free Essay Example

The problem with the credit card industry isnt just credit card companies it’s the people that use credit cards too. A lot of people apply for credit cards because they see the balance of money that they can receive. A credit card can be an asset to your lifestyle, but if the credit card is not handled and used carefully it can become a liability, especially if you find it so convenient and easy to use that you lose control of your spending. There are many reasons why Americans should not have and use credit cards, some of the disadvantages of having credit cards is credit cards cost much more than other forms of credit, such as a line of credit or a personal loan, if you dont pay your credit card bills on time then you will be charged with extra additional fees. Credit cards can severally damage your credit rating if your payments are late. Credit card companies allow you to build up more debt than you can handle. A lot of people in The United States of America have bee n swindled by giving their credit card numbers to dishonest salespeople over the phone and on the computer. It also becomes a loan when the credit becomes due and you do not pay for it. A lot of American citizens often have more than one credit card and each credit card has a credit limit. When the credit limits for all cards are added up, the total can be in the thousands of dollars. Credit card consumers can fall into the habit of using credit cards to extend their income. Credit cards are easier to use than applying for loans even when a loan from a credit union, bank or other financial institution may provide the funds at a lower interest rate. Credit card companies make money by charging you a high interest rate on the money that they loan to you. It may be 10%,15%, or 25%. If you are late paying money back these companies will hit you hard. However they are not in the business of causing people to go bankrupt or making people get a second job but it does kinda seem that way to a lot of Americans. Going through problems with credit card debt and not talking to your creditors is like going through a tough time with a girlfriend/boyfriend and not talking to them about it. Nothing will get better before you take the initiative to set the problem straight. No matter your debt or income you can get back on your feet if you are dedicated enough but it is best to never put yourself in that position of applying for a credit card.