Use of Credit Cards :: essays research papers

The use of deferred payment cards is much more wicked than use of checks or cash. Paying with cash is very easy for shrewd howmuch money is available and how much dirty dog be spend makes it very hard to get into debt. When paying with a check the work atis a bit trickier the exact balance has to be kept on the account at all time. Knowing what this balance is and continuouslyreplenishing it can be quite hard. Nevertheless, even with a check consumers can not get into a lot of trouble. If more money is spent accordingly the shopper has on the current account, the last written check will be rejected and account will be suspended until the balance is paying(a) despatch. With credit cards however, every year more and more mass get into debt.According to American Bankers Association (ABA), Americans owe more hence $387 billion on their credit cards. This frighteningnumber, averaging about $3,900 per family, is just as bad for the economy as it is for the consumers. In Septemb er of 1995, for ex adenylic acidle, The AT&T Universal card charged $15 per month for new fee to people who paid their bills just one day aft(prenominal) the due date. Visa, on the other hand, was charging the penalty feesfor as little as a dollar over the limit, plus an interest of up to 24.9 circumstances per year. In the second quarter of 1995, overdue payments as a percentage of outstanding balance hit 3.267 percent. That is the highest mark since recession of 1991. "The picture is, about consumers are very,very deeply in debt," says Charles McMillion, chief economist with MBG reading Services. A swipe of the card has becomeso natural that umpteen consumers do not realize how much they have charged, nor that it will top them forever to pay that debt off. Seventy percent of respondents to a recent ABA peck said that it would take them at least two months to pay off their holiday expenses. Unfortunately, there are more ways to use a credit card than ever before , making it very hard for consumers to chorus from spending a lot of money. Shopper can charge groceries, teeth cleanings, and on-line(a) servicesto their credit cards. Introduction of rebate cards which offer users credit towards new vehicles, frequent-flyer miles,