Credit Card Debt
Credit card debt has become a persistent and serious problem in most of the developed world. The reason is not so much the efficacy of credit card usage, it’s that credit cards in themselves are designed to promote this false belief among consumers that they have money when in fact they don’t. When a customer buys an audio system worth $ 1,000 when he earns $ 5,000 a month, he is refusing to acknowledge the fact that his salary does not allow such an expenditure without him cutting out a serious chunk from other expenses. However, blinded by the magic of credit cards, people like him believe that credit cards are in fact the option which makes it all possible. Credit card debt, unfortunately, is the by-product which they only come to know once it’s too late.
Credit card companies work on the principle that every dollar spent on the credit card earns them around 20 – 30 cents. It is for this reason that credit card deals have become so common that it seems as if anyone with a paycheck can get himself a credit card. Credit card companies woo customers with offers of low interest rates and mirages of dreams left unfulfilled so far. They promise all the glories that modern day consumer culture has to offer and make it seem as if all of these are readily available, at the customer’s present salary, if only he would acquire the credit card. Most people are therefore easily swayed and miss the point that if their present salary cannot afford them the new plasma screen, how does the credit card make it possible.
The folly becomes apparent when they are faced with credit card debts which seem eternal. Most people end up paying the minimum payments for years on end since they can not provide the money to pay off the debt. All the while, credit card companies continue to reap huge profits. Credit card debt consolidation schemes are another easy way for these companies to dupe the masses. By offering lower interest rates and by consolidating the credit card debt, these companies promise an easier option and a quicker end to their debt. However, they forget to describe that by lowering the interest rate, they are in fact lulling the customer to stay in debt for a longer period of time. The longer the person is in debt, the more he has to pay. So in fact, he ends up paying the same, if not more, had he not consolidated his debt.
Credit cards have acquired the status of a necessity and to not have one is considered an impediment. However, it should be noted that they carry a heavy burden and once under it, the person is usually left with little option other than to persist. Credit card debt once incurred, does not go away easily.
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