...Final Draft Although there are many advantages of possessing credit cards, most Americans should not use them; because they do not use them properly to where they become liable or subject to overwhelming debt, which could damage their credit history. Personal credit card debt has doubled in the past four years and personal bankruptcies are at the highest ever, and still more Americans are spending money that they do not have. Credit cards allow and encourage individuals to buy more than budgeted, and this is obviously a situation, which is best to avoid. Knowing when it is a bad idea to use a credit card can help you to avoid adding debt to your credit card. It is no doubt that the use of credit cards have eased the rate in which people obtain goods and services, but the use of credit cards have done more damage to the finances of Americans credit card users than good. Credit cards have become a problem for most American credit card users and there are even cases that some Americans have committed suicide because of the heavy debts he or she owes the credit card companies. Should Americans continue using credit cards? The answer is definitely no as the detriment that comes with using credit cards outweighs the benefits. Credit cards are a huge convenience in everyday life, yet most people are irresponsible when using them. The convenience of possessing credit cards increase the risk of overspending because people can convince themselves to spend more than what they...
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...Nilson Report, February 2010, the average credit card debt per household with credit card debt is $15,788 and the number of credit cards held per family is 3.5. This issue has destroyed many lives and keeps causing problems among many American’s today.” It is my personal opinion that credit card usage ought to be reserved for people who have a high income and who reliably make a lot of money. Personal credit card debt doubled in the past four years and personal bankruptcies are at the highest rates ever and still more Americans are spending money that they do not have. There is a potential dark side to plastic with some unfortunate account holders getting out of their depth and building up debts that become a problem and cause of worry Credit Cards have become a problem for most Americans credit card users and there are even cases that students commit suicide because of heavy debts they owe the credit card companies (Manning, 2000) By paying with cash, you can “feel” the money leaving, which is not true with credit cards, where upon flipping a credit card up on a counter, leaves you feeling nothing emotionally. Just as credit cards encourage overpaying for an item, they also allow individuals to buy more than budgeted. First, the charges by most of the credit card companies are rather exorbitant. Apart from that these credit card companies charge their customers on the use and withdrawals of money with the cards, the credit card companies also charge their customers on...
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...Credit card corporations and banks are wealthier than ever before, while at the same time as the majority of American citizens are getting themselves into additional debt. Citizens who are in a tight spot find their selves needing credit cards. Today’s society is continuously struggling to get rid of debt, although while attempting to eliminate debt we sometimes generate extra debt. The one foremost trouble we all encounter dealing with credit cards is debt. Credit card corporations are not looking out for your concerns and willing to help. There is no positive side to credit card use. You will spend more if you use credit cards. Even by paying the bills on time, you are not beating the system! However, most families do not pay on time. The average family today carries $8,000 in credit card debt according to the American Bankers' Association. (David Ramsey, 2009) The one thing I dislike about credit card corporations istheir always-raising interest rates. Minimum payments just are not enough to cover the finance charges. You do not want toutilize credit cards because you will create a spending routine that is awful, in addition, you will bring upon yourself debt that can have an effect on your credit score ratings or become a victim of identity theft. To use a credit card correctly, you must make purchases you are able to pay off upon is getting your monthly bill, but some Americans do not. A large amount of people lack discipline and are liable to abuse credit cards...
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...Credit VS Cash Although both credit and cash differ in some ways, they are equally important and their functionally has aided in making payments quick and easy in today’s fast paced society. The differences are huge, but they can impact people’s lives in different ways. While in today’s world 73% of people use less cash than ten years ago, this could become a bigger problem in the world. Many people wonder why using a card is safer than using cash? Most of them do not like carrying around a lot of cash due to the fear of losing it. Once it is lost, there is no way to replace it. Cash cannot be replaced; on the contrary, if one loses their credit card they are protected. If a credit card is lost or stolen one can easily put a hold on the account. If someone besides the owner uses it, the credit card company will investigate it and the most that is required is to pay a minimal amount, if that. Carrying cash is often not an option when making large purchases because of the possibility of losing it or the possibility of being robbed. Credit cards offer more security and it is much safer and easier to use a credit card. Very few businesses offer a reward while paying with cash. However when one pays with a credit card, the company normally offers the buyer a rewards program where they can earn something back on the purchases they make. Credit card companies offer a “Cash-Back Card” which allows the user to receive cash back at the end of the month when a certain amount of...
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...Should Americans use credit cards? 8/29/10 University Composition and Communication II Lowrie Fawley Axia College of University of Phoenix Why would a person want to induce stress, have financial burdens, and pay more out-of-pocket expense just for using a credit card? There is no need to strap your self into the continuous game that credit card companies like to play. This is why it is best to not use credit cards for any reason what so ever. According to a study published in the journal Social Science and Medicine (February 2000), found that people with a higher level of debt were more likely to have higher stress levels than that of someone who had lower levels of debt. What this means is that people with the money to spend will spend it and not worry about the consequences until a later date. The stress hits after receiving their statement and often leads to depression related to not having the money to pay or having to pay out more money in interest fees. When you worry about money, it affects every aspect of your life. From doing daily chores to even going to work, it can place a burden on your family and quality of life. Furthermore, if you do not manage the stress correctly, you may end up with chronic depression, anxiety attacks, or even contemplate suicide. This stress is most common in students and graduates whom have a higher debt ratio than any other person. Having credit cards fills your life with even more strain as you have to worry about paying the...
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...“Primary Documents in…”). Interesting, almost 149 years later, and with many Americans in debt today, the above words, can only suggest one thing; perhaps slavery or involuntary servitude is not dead but has only taken on a more disguised form. Although the above may be true, some believe debt is not slavery but a financial hardship brought about by one's own actions. With statics showing that the American public holds the bulk of the seventeen trillion dollar, deficits (The Debt to…); and that only 32 percent of Americans actually budget (Jacobe), one can come to believe this is true. That it is the public’s fault for not budgeting. For this reason, it is necessary that we diligently research and investigate past and present evidence to educate ourselves on the national debt crisis, so that we could shed some light on the root cause. First all, we will need to understand eccentric statistics on how many Americans are actually affected by debt today. According to Michael A. Fletcher of The Washingstonpost.com, three out five workers’ mortgages, credit card balances and installment loans are outpacing the amount of money they are able to save for retirement. In addition, Bill Fay of Debt.org acknowledges, that the more than 160 million Americans with credit cards have an average of three credit cards each, and on average, each household with a credit card carries more than $15,000 in credit...
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...Lora Smith COM/156 ASSIGNMENT-Thesis statement Using a credit card leads most Americans into debt. My thesis will be covering why I think that American’s should not use credit cards and the consequences that come along with being in such an industry. It will be covering the regulation’s benefits many companies have and the don’ts on having them and what will come along with accepting them. I will talk about hidden fees along with annual fees and all the fine print that everyone seems to not read. I will also touch basis on how one can stay out of debt in the paying process even though everyone wants a credit card some should not have one due to mismanaging of their incoming funds period. Writing on how my views on the credit card industry and why it is targeting the venerable and the young college students and people they know need credit and give it to them at a APR that is out of this world keeping them bound and in debt to them. My views on the credit card industry is that if they know that a person has more outgo then income then they should not extend the credit. Some people are so desperate and they know it that they will give them the credit but it will cost them just as much for the credit than the credit itself. My view from my stand point of view because I been there is that as long as you pay on time regardless if it’s the minimum they will keep extending credit to you so you can stay in debt to them and by the time you have paid one thing off...
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...and excessive use of credit cards are a major economical issue in Turkey for a decade, which poses threats to the core structure of our society and the individuals’ self-esteem. News regarding the problems arising due to the inappropriate use of credit cards increases on a daily-basis, which signifies the fact that the problem shows a continually expanding trend, which is worth carrying an investigation upon. In order to overcome this problem, eight solutions were proposed. These solutions were banning the installments in shopping, copying the American model by providing collateral to the banks while getting a new credit card, requesting a guarantor per person while giving a credit card, giving maximum one credit card per person who has already debt, increasing the commission rate of the point on sale machines, educating people about the usage of credit cards and tell them its advantages and disadvantages, preparing therapy meetings by government for shopaholics and limiting cash advance credit from credit cards. The underlying research methodology of these solutions includes student surveys, internet based researching, discussions with credit card users, and discussions with personnel of banks. These proposed solutions were evaluated according to their effectiveness, feasibility, acceptability, sustainability and legality. Among these solutions three of them passed the criteria and suitable to apply. The chosen solutions can be regarded as the most effective and feasible...
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...How People Fall Into Debt Unfortunately in today’s demanding society, many find themselves racking up thousands of dollars of debt. There are many different reasons as to why people wind up in this mentally and finically stressful position. While some people are just fiscally irresponsible and lack personal discipline; others that are much more responsible aren’t immune to debt, they can be hit with an unexpected medical bill or job loss. Living outside of ones pay check and unexpected medical incidents are some of the more common way people fall into debt. Credit cards are attractive for many people because they don’t have to physically carry money with them; but they are also dangerous because of interest rates that the banks charge. These rates can vary from bank to bank but in addition to interest rates if you can’t make your payment deadline the banks will charge you extra for a late fee which just makes the problem worse. For example my friend Chris learned this the hard way when he purchased a pretty pricey mountain bike using his credit card. It took Chris six months to pay the bike off and he winded up pay thirty percent of the bikes total price back just as interest. Needless to say this made Chris much more cautious about using his credit card and when he does use he pays it off as fast as he can to prevent the interest from racking up. However not everyone learns this lesson, many times the interest compounds and people can’t pay back the interest let alone the...
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...until now. This bill is a huge victory for credit card companies and retailers, but will undoubtedly affect millions of Americans in a negative manner (www.onlin.wsj.com/20050415). The bill is the first major change to the bankruptcy laws in twenty-seven years (www.pbs.org/3.25.05). The bill will make it harder for consumers to eliminate their debt with the use of bankruptcy. There are now new restrictions and a “means-test”, which determine if consumers can have their debts erased by Chapter 7 bankruptcy or Chapter 13 bankruptcy. The bill also makes attorneys liable for any inaccuracies in their clients’ bankruptcy filings. This bill has several controversial issues associated with it and will be explained later, along with the actual provisions of the bill. To understand the controversy, one must first understand what bankruptcy is and the difference between Chapter 7 and Chapter 13 bankruptcy filings. Chapter 7 bankruptcy is a liquidation proceeding in which the debtor turns over all of their non-exempt property to a bankruptcy trustee who converts it to cash to pay off the creditors. Within four months, the debtor is usually relieved of all obligations. In many cases, the debtor has no assets to lose, so Chapter 7 gives the individual a relatively quick “fresh start” (www.bankruptcyaction.com). The most common reasons for filing Chapter 7 bankruptcy include: unemployment, large medical expenses, extremely overextended credit, marital issues and other large unanticipated...
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...CREDIT CARD CONTENT Sl. No | | Page. No | 1 | INTRODUCTION | 1-3 | 2 | CREDIT CARD: WHAT ARE CREDIT CARD | 4-6 | 3 | ADVANTAGES OF CREDIT CARD | 7 | 4 | DISADVANTAGES OF CREDIT CARD | 8 | 5 | CREDIT CARD: PROS AND CON | 9-11 | 6 | HOW YOUR CREDIT CARD IS CHANGING | 11-13 | 7 | HOW TO GET OUT OF CREDIT CARD DEBT | 14 | 8 | CONCLUSION | 14-15 | Credit Cards: Introduction Are you thinking about making a purchase? Among the payment choices tucked away in a consumer's a wallet is the credit card. Its popularity since its debut in the late 1950s has skyrocketed. Many people enjoy the convenience and protections it offers, such as the ability to defer payments and keep records of purchases. However, credit cards can either help to improve your lifestyle by offering convenient payment and helping you build credit, or they can leave you with a pile a of debt - it all depends on how you use them. Problems can be avoided but understanding the terms of the credit card agreement, spending wisely and selecting the appropriate card. Here we take an in-depth look at credit cards and provide useful information about how you can use one to your best advantage. How Credit Cards Built A Plastic Empire :- Credit cards are nearing necessity status in modern life. If you want to rent a video, book tickets online, or place an advanced order for something...
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...help them to live relatively comfortable lives financially. Yet, by her own admission, without major financial burdens, marriage for them is still difficult (Heller, 2011). American poet and rapper, Notorious B.I.G. said in one of his most popular songs “Mo’ money, Mo’ problems” (Wallace, 1997). In this simple lyric, he was trying to convey the fact the money does not solve everything. In fact, it brings its own set of problems. While he may have been correct, the absence of money brings its own set of unique obstacles, especially within the family dynamic. Many marriage counselors will say that there are numerous pitfalls for all families. Children becoming teenagers, managing the day to day workings of a household, and parents getting older are just a few of the obstacles that families can face. However, financial stress can be one of the largest obstacles that a family has to tackle. In a poor economy, these problems are magnified. For the case of this paper, an imaginary family will be used to illustrate these problems. Jason and Janet Larson have been married for ten years. They have three school aged children. Jason works for a construction company as an electrician. Janet works as a teacher at a local high school. Together, their household income is about $100,000 a year. For most of their marriage, life has been comfortable for the family. However, with the downturn in the economy, Jason gets laid off. The family has now lost $5000 a month, or $60,000...
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...Barclaycard time line 1950 Launch of the Travel and Entertainment cards by Diners Club this meant bills from Hotels and restaurants could be reimbursed by the issuer similar cards by American Express and Carte Blanche followed. 1958 Bank America launched the BankAmericacard 1965 Bank America had established a successful franchising system through marketing activities and establishment of large merchant network. customers were provided with a national and eventually an international network of service points which later became Visa credit cards were expanding rapidly. 1965 Barclays was the first UK bank to recognise the potential of credit cards. Barclays negotiated a franchise from Bank America at the end of 1965. After 6 months 30,000 retailers had signed up 29th June 1966 Barclays advertised all retailers’ names and addresses in the Daily Mail extending over eight pages this was successfully taken up by the adult population of Britain. 1966 Barclaycard had passed the milestone of one million Barclaycard Holders 1967 Barclaycard lead the world with the first operational ATM 1974 To eliminate much of the paperwork of the original systems and credit control systems such as telephone authorisation with credit control managed by floor merchant. Barclaycard turned to a fully automotive computer based system to speed up the processes 1977 Barclaycard becomes a founder member of the international Visa System Company Barclaycard (now Barclay business is introduced) ...
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...Credit Cards, Excess Debt, and the Time Value of Money: The Parable of the Debt Banana Timothy Falcon Crack and Helen Roberts University of Otago, New Zealand The parable of the debt banana is an analogy between the accumulation of excess personal debt and the accumulation of excess body weight. We created this parable to grab student attention and to then serve as a springboard for discussion of personal debt, time value of money mathematics, the mechanics of credit cards, personal bankruptcy, moral hazard, ethics, and credit card reform. A follow-up survey in a large class (453 students; 84% response rate) showed that 92% of students seeing the parable alongside the underlying finance principles said that it grabbed their attention more than if the underlying finance principles alone were presented, and 87% of students said it made an impression upon them that will make them more careful in their future credit card spending habits. We provide worked examples of credit card use as well as a spreadsheet that lets readers explore these examples and perform sensitivity analysis. INTRODUCTION The parable of the debt banana is an analogy between the accumulation of excess personal debt and the accumulation of excess body weight. We created and presented our parable in a compulsory Finance 101 course taken by all business majors. Most students had little or no exposure to the world of finance and many had poor mathematical skills. Both their lack of financial...
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...------------------------------------------------- Debit card A debit card (also known as a bank card or check card) is a plastic card that provides the cardholder electronic access to his or her bank account/s at a financial institution. Some cards have a stored value against which a payment is made, while most relay a message to the cardholder's bank to withdraw funds from a designated account in favor of the payee's designated bank account. The card can be used as an alternative payment method to cash when making purchases. In some cases, the cards are designed exclusively for use on the Internet, and so there is no physical card.[1][2] In many countries the use of debit cards has become so widespread that their volume of use has overtaken or entirely replaced the check and, in some instances, cash transactions. Like credit cards, debit cards are used widely for telephone and Internet purchases. However, unlike credit cards, the funds paid using a debit card are transferred immediately from the bearer's bank account, instead of having the bearer pay back the money at a later date. Debit cards usually also allow for instant withdrawal of cash, acting as the ATM card for withdrawing cash and as a check guarantee card. Merchants may also offer cashback facilities to customers, where a customer can withdraw cash along with their purchase. ------------------------------------------------- Types of debit card systems There are currently three ways that debit card transactions are processed: online...
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