Not only are credit cards bad for the users, they are bad for vendors also.
Depending on the type of business and the company that processes the charges, many vendors have to pay an assortment of fees that can be 16% or more of the gross sales. That's in addition to the taxes they will also have to pay. These fees apply to debit cards also.
A word to the wise: Get rid of all of your cards, except one for emergency use. Use it only for emergencies.
Make your small, routine purchases with cash. For other purchases, use personal checks. Always carry some. It's ok to use a card if a vendor refuses a check.
Having credit cards isn't a bad idea, it's having no self-control that is stupid.
"He who does not think himself worth saving from poverty and ignorance by his own efforts, will hardly be thought worth the efforts of anybody else." -- Frederick Douglass, Self-Made Men (1872)
and what about the people with 10 different types of credit cards? couldnt they survive with a limit of one or two? perhaps then, they would only have interest on one card, therefore not driving them so into bankruptcy. [sp?]
curiousity may have killed the cat but satisfaction brought me back
and im 16, please dont bag on me if i dont think all the way through
The only way to deal with illegal loan sharking was for local citizens to create their own mutual societies and offer each other the chance to get loans. These groups could be supported better and then people wouldn't have to go to loan sharks or to credit companies.
Some purchases over here (in the UK) make sense when you use your credit company though - if I buy something on the internet using my credit card and the purchase falls flat or the company goes bankrupt I can get my money back from the credit company. That doesn't happen with bank cards or cash payments.
Also, there are other protections by using a credit card that buying by cash doesn't give me - if my details get compromised I get sent a new card and my credit details are changed immediately. That doesn't happen in the UK with cash or bank card purchases, if my bank details get compromised I have 2-3 months of hassle and delayed cash liquidity that just isn't worth it.
Last edited by Infinite Chaos; 05-10-09 at 04:05 PM.
If you cant afford to buy something, that means you should go without. Save your money, then buy it. But people use their cards to buy things, then they use them again and again, and then the bill arrives and they are shocked because they can't pay it.
They take out a second card to pay off the first, a third to pay off the second, etc etc.
The only people who should be given credit cards are those with a high enough income that would ensure they can pay the bill, and the limit on a credit card should be based on that persons income.