Can it be one of the reason so many people in debt?
By kingparker
@kingparker (9673)
United States
September 23, 2010 8:43pm CST
From our habit, we keep on borrowing money to shop, to dine, almost everything that we have to spend money, we simply took out the plastic card and swipe it on the machine. At the end, we just realized that we don't have that much money to pay it back. But right before we swipe this plastic card, do we know that we have to pay it back someday, or at the end of the month? Do we always have this confidence that we can pay it back, just don't worry about it.
I knew a couple of people who doesn't realize that they don't have money to pay it back, but they just told themselves before they swipe the card, they can pay it back. And most of them, really don't know how much interest rate they carry on with their credit cards. Would it be one of the failure our average people have too much confidence on our financial capability?
6 responses
@gloryacam (5540)
• Philippines
24 Sep 10
That is so true. A lot of people who are so indebted because they used their cards indiscriminately, thinking that they could probably pay their dues later. Who could not resist swiping their cards? It requires a good amount of discipline so that one cannot be tied to their credit card dues.
I should know because I'm guilty of it. 
And learned my lesson the hard way. Now, I'm slowly paying all my debts, and use my cards only in cases of emergency, or when I know that I can really pay it the next month.
And learned my lesson the hard way. Now, I'm slowly paying all my debts, and use my cards only in cases of emergency, or when I know that I can really pay it the next month.@kingparker (9673)
• United States
24 Sep 10
We all make mistakes. From these daily mistakes, we develop our personal theory, and we learn a hard lesson from it. Credit cards are convenient, and it can be addictive if you can't resist those temptations. There is also consequence associate with convenience.
@gloryacam (5540)
• Philippines
24 Sep 10
Right you are about them being addictive. It takes a lot of willpower, especially for shopaholics. Convenience always has a consequence. Always.
@bing28 (3795)
• Philippines
24 Sep 10
Right when it comes to debt, we think positive that we can be able to pay'. Hope we think positive too that we will be able to earn so we could pay.
@kingparker (9673)
• United States
24 Sep 10
My point for this discussion is, that we should measure our personal ability against the money we would spend from our credit cards. One thing we neglect to consider before we took action is that the money we borrow from credit cards, they are associated with interest rate. How much percentage rate, we should know better before we make decision to borrow that money. Many people might not consider it. Unless they pay the balance full by the end of the month.
@gloryacam (5540)
• Philippines
24 Sep 10
Right. A lot of debtors are unable to pay because the longer they delay payment, the higher the debt becomes becomes the interest and other charges keep accumulating. I've even heard (but not confirmed) of a bank that charges interest even before your account becomes due! The worst scenario is when the interest grows so big it becomes equal to or more than the principal.
@Interlude (88)
• United States
26 Sep 10
Credit cards are a problem. There are people who do not realize what they are-- loans. Every time you swipe that card, you are taking out a loan with the company you have the card with. You owe them that money. If you don't think of it like that, it is very to misuse a credit card.
However, I think people are getting better about this, actually. Not everyone, but there are many people who are trying to cut down on credit cards and spending. Still, it is very tempting. I have credit cards, and knowing that I can buy now and pay later makes it very easy to buy things I would not otherwise buy. Still, I like my rewards cards because I know that, if I am careful, I will be able to earn extra money. If it ever reaches the point where I am out of control, I hope I am able to force myself to get rid of the card.
@allamgirl (2140)
• Philippines
24 Sep 10
i think so. that's why i don't use credit cards. i don't trust myself with it. i've actually never tried to apply for it, but i can just see myself drowning in debt. i can be an impulse buyer sometimes, and i buy things that i really want but i don't really need. which is why it's safer for me not to have a credit card.
@my_name_is_coco (4333)
• Philippines
26 Sep 10
I think that currently,some people do not have any good money management.they tend to have that mentality of,"I worked hard,so I have to play harder".also,I think that currently,credit cards are status symbols.the more credit cards you have,the more people think you are well off because they assume you can pay them all.I think people should learn to manage their finances wisely.
@puccagirl (7294)
• Israel
24 Sep 10
Yes, credit cards is a huge reason for debts. Most people use credit cards without thinking at all, and this is a problem that grows constantly if you do not watch out. So while many see their plastic fantastic as a blessing, it's really not, it may just as well be a curse!
