Although it's not always good news, numbers can't lie. Throughout the United States, Americans are racking up some very unpleasant statistics regarding credit card debt. This trend seems to have begun in the 1980's, because it was during that decade that credit card use started to become more popular and eventually came to be a very normal way to make everyday purchases.
Additional Hard Sell Tactics
Another reason to be worried by the unflattering picture that such credit card debt statistics were showing is that the credit card companies began to do their best to find more innovative ways to sell credit cards to consumers and if you have checked your mail box, or watched TV or been otherwise bombarded by different marketing tools, you would realize the hard sell tactics that were used to get you to use credit cards.
As these advertisements began to affect consumers, cash became a less popular way to make purchases, and thus, at least partially, credit cards led to the rise of information age. When computers took hold in society, so did credit cards. It also led to the less than desirable rate of debt that statistics now present, since during the 1980's people used cash and checks less than credit cards.
Once credit cards had made themselves such a normal part of life, debts incurred from credit cards also became normal. Statistics on levels of credit card debt from that time show that most Americans were getting themselves into nine thousand dollars worth of debt annually, most of which credit cards were directly responsible for.
A common reason for such misuse of credit cards was that often the user mistakenly thought that he or she was using their own money when making credit card purchases.
This erroneous belief is not true in any way and is dangerous. The money used to make purchases on credit is that of the credit card company and it is your responsibility to return all money you borrow in accord with the terms you agreed to when your credit card was issued.
In addition to purchases made, interest also builds up in your credit card account, bringing debt to staggeringly high levels. The average interest rate on most credit cards is roughly fourteen percent, a rate that can quickly change a small credit card balance into overwhelming debt.
About the Author:
Are you never able to pay off credit card bill at the end of the month? Learn how to get your debt paid off easier - starting today - at the Debtopedia website. Visit http://www.debtopedia.com to get your free copy of my special report "Secrets of Credit Card Debt" now.
No comments:
Post a Comment