Instructor: Dierdre McKee
Americans Should Not Use Credit Cards
Why Americans should not use credit cards, throughout the United States, credit cards have become one of the most popular forms of payment in everyday shopping whether consumers are making a routine trip to the grocery store or shopping online. There are various motives for not having a credit card and it is frequent for credit card companies to try to lure new or existing clients in by offering a zero percent interest rates and low fees. What they do not tell people is that there might be fees for doing so or that the rate only lasts for ninety days. These come in addition to annual fees and late fees, which are insanely high. Sure, consumers can avoid them by finding cards without fees and paying on-line so that payment is not lost in the mail, but why go through that trouble? Interest Rates and Fees
The one thing to dislike about credit cards is the interest rates can be high if you do not choose the right one. To use a credit card correctly, one must make purchases he or she is able to pay off upon getting the monthly bill, but some Americans do not. Credit cards should be only use as second-hand funds for emergencies only. A heavy user can be liable to abuse credit cards. According to the Federal Reserve report, (2010), the total U.S. consumer revolving debt fell to $866 billion at the end of 2009, down from $958 billion at the end of 2008. About ninety-eight percent of that debt was credit card debt. Americans who utilize this financial tool are liable to spend more on transactions than those who purchase things with cash. As soon as the bills turn up, some people would pay only the minimum payment on their credit card. Keep in mind, small minimum expenditures just are not sufficient to cover finance charges. According to Mason, (2010), “Credit cards interest rates are at its highest in nine years. The average rate today...