Why You Shouldn't Use Credit Cards

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The credit card companies and banks are getting richer, while most Americans are getting more in debt. The economy is in trouble, therefore, more and more people are relying on credit cards. In today’s society we are constantly trying to get out of debt, but in the process of trying to get ourselves out of debt, we create more debt. One of the major problems that most of us are dealing with is credit card debt. Most credit card companies are not looking out for your best interest. They are constantly raising interest rates. Minimum payments are just enough to cover the finance charges. Most Americans should not use credit cards for the following reasons: it will create bad spending habits; you will incur more debt affecting credit score rating; and possibly make you a victim of identity theft.

In my opinion, a credit card should be used for purchases that you are able to pay off in full upon receiving your statement, but most of us don’t. Most people lack self control and tend to misuse the credit card. Credit cards should mainly be used for emergencies, but we tend to use them for everyday purchases such as: food, gas, clothing, etc. Some people are living in a borrowed lifestyle, because they purchase things they can’t afford. People will spend more on a purchasing using a credit card than they would with cash. “People that use credit cards tend to spend 12%-18% more on transactions than those who use cash (faithfitnessfinance.com).” For example, if you are going to pay with a credit card in a fast food establishment, it is easier to get the large drink instead of the medium drink. When the statement arrives, most people will make the minimum payment on his/her credit card. The minimum payment only covers the finance charges, which will increase the amount of time it will take to pay the debt off. “It will also increase the amount of interest you end up paying (about.com.)” Possessing these bad habits will lead to more debt.

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