Americans should handle their credit cards responsibly and should not become a part of that number of abusers. The Scott III (1999) website “The average Americans household has eight credit cards, which are used to charge almost $2 trillion in goods and services annually. ” No one wants to be a part of the group of individuals who he or she can put his or herself at risk for acquiring a negative credit score, possible job rejections, rejections when trying to rent or lease a vehicle or property, possible marital and family problems, health problems, or higher car insurance or denial of insurance.
The misuse of credit cards is causing credit card debt to spread more rapidly every day. Today’s society makes it almost impossible to go without using a credit card in some way or another. Renting movies, renting a car, reserving a hotel room, and booking airline tickets are some examples of purchases that require a credit card. Although this may be true, credit card users still must think very responsibly and not fall into the deadly hands of the credit card monster.
Even though some Americans are responsible credit card users, those that tend to overspend should not use credit cards. Credit cards can be seen as a convenient piece of plastic that some Americans rely on for purchasing necessary and unnecessary items. Using them can most certainly simplify their lives if they do not have cash readily available when needed. Credit card users can benefit from using credit cards in many ways. Some benefits are reserving a vehicle and keeping a track record of expenses that appears on bank statements.
When reserving a vehicle, the representative will allow a person to reserve the vehicle with a credit card, although at the time when the vehicle is returned, the representative will allow a person to pay with cash, but a credit card is needed to hold the reservation. Expenses can be budgeted each month with a credit card and an individual can acquire a record of the money he or she may spend. Many credit card companies will pinpoint purchases so that people are aware of how much is spent in a number of areas without them needing to sort through their statements.
Although credit cards can be quite useful, Americans should use them responsibly. If Americans see their credit card balance decreasing to a lower balance or to a zero balance, then they are considered responsible users. Although some Americans use credit cards responsibly, some have become careless in their spending causing an increased amount of debt. The misuse of credit cards has a negative effect on many American households. Bragg (2010), ” According to Bragg (2009) “According to the Nilson Report, a credit industry newsletter, the average American household has $8,329 in credit card debt” (para. 1).
Richardson (1999-2010), “As of January 2008, the percentage of credit card accounts that were 30 days past due or more was 4. 18 percent in the fourth quarter of 2007, according to the American Bankers Associated” (Effects, para. 3). When Americans realize they are credit card abusers and they determine that they are in need of some help with managing their credit card account (s), they tend to seek professional help from outside agencies for a fee such as, debt consolidation services and consumer credit counseling services. These companies that help individuals reduce their debt if it grows out of control.
Taylor (2010), “If you’re in over your head with credit card help, there are many free sources you can turn to for help with your debt. No one can make debt disappear, but there is help out there that will set an individual up on a debt reduction plan they can handle” (Debt reduction help, para. 8). Some Americans are forced to file bankruptcy if outside agencies cannot assist them in managing their debt. Richardson (1999-2010), “According to Money-zine. com, the number of bankruptcies in 2007, during the second quarter, was 200,732, which represents an increase of 11. percent above the first quarter filings of 2007” (Bankruptcies, para. 5). Many Americans do not realize they are credit card abusers until they are deep into debt. If an individual’s monthly credit card balance is steady rising, then he or she is most likely going down the wrong path of being a credit card abuser. Using cash wiser is a way to stay out of credit card debt. A large number of American households spend more cash than grossed. Many Americans feel the need to use credit cards because they do not spend their cash wisely.
Americans should find ways to spend money in a responsible way. Developing a budget and sticking to it is a good place to begin. By budgeting, they will be able to watch their cash flow responsibly. Americans should take notice of how essential their cash flow is. They should know how much cash is brought in and how much cash is going out. Concerning finances, the best way to move forward on a positive note is to see a plain image of the nice benefits that can be enjoyed at the same time as taking control of a negative financial situation.
The enjoyable benefits can include: luxurious vacations, removing the constant concerns of being without money, the ability to see financial problems long before they are present, and feeling the good feeling of being debt free. Most important, Americans can free themselves from a stressful situation caused by financial problems. They can focus on what matters most in life such as, family, friends, and traveling the world. Even though some Americans are responsible credit card users, those that tend to overspend should not use credit cards.
Handle cash with plenty of compassion and attention it merits. If Americans choose not to do so, the consequences can be very unforgiving. Cash should be spent wiser so that Americans do not become victims to the credit card monster. Although some Americans are responsible credit card users, most Americans should not use credit cards; they should use their cash wisely.