Is Credit Card Necessary in Our Life
A credit card is a card issued by a financial company to the holder in order for an individual to borrow funds often at a point of sale. It is important to note that credit cards charge interest and are basically use for short-term financing. Moreover, the interests charged on credits cards are enacted usually one month after purchasing is made and borrowing limits are pre-set. This is with regard to the individual`s card rating. Significantly, credit cards contain a higher interest rate that is about 19% per year than majority of the consumer lines or loans of credit. Consequently, many consumer stores allow payment through credit cards, an aspect that has seen the vast growth of these cards. Suze denotes says “For Americans who don’t pay their entire credit card bill each month, the average balance is close to $4,000.” In addition, they are a mode of payment in the current world by most companies and even the civil servants. However, the various limitations like dent limit make credit cards insignificant in our life. Credit cards are not necessary in our life because they impose various limitations to the card holders. First, charging items, goods, and services on plastic can be convenient but encourage poor spending habits. Credit cards are readily within one`s reach. Moreover, people walk with these cards in their wallets and handbags. This is not only, a limiting factor, but also encourages the issues of money expenditure. For instance, online stores have become a considerable element in the current American society. Buying of goods and services can be done within seconds, especially with the home delivery services at hand. Suze in her argument emphasizes, “But also realize that some of you are broke by circumstances. I believe you are Broke by Choice.” This is to indicate the practices that we engage with the accessibility to the cards. Credit cards expose high rate expenditure among...
Cited: Orman Suze. "Money Matters." Money Matters. Version 1. Yahoo, n.d. Web. 21 June 2013. <biz.yahoo.com/pfg/e32credit/>.
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