Use of Credit Cards :: essays research papers

The manipulation of reference work scorecard game is much more dangerous than use of checks or cash. Paying with cash is precise easy for knowing howmuch coin is available and how much can be spent makes it very am human actionious to get into debt. When passing with a check the processis a bit trickier the exact agreement has to be kept on the key out at all time. Knowing what this balance is and continuouslyreplenishing it can be quite an hard. Nevertheless, even with a check consumers can non get into a lot of trouble. If more money is spent then the shopper has on the new account, the last written check will be rejected and account will be suspended until the balance is paid off. With credit cards however, every year more and more batch get into debt. check to American Bankers Association (ABA), Americans owe more then $387 billion on their credit cards. This frighteningnumber, averaging about $3,900 per family, is just as bad for the economic system as it is for t he consumers. In September of 1995, for example, The AT&T customary card charged $15 per month for late fee to people who paid their bills just one day after the due date. Visa, on the other hand, was charging the penalty feesfor as little as a sawbuck over the limit, plus an interest of up to 24.9 percent per year. In the morsel 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, some consumers are very,very deeply in debt," says Charles McMillion, chief economist with MBG Information Services. A snarf of the card has becomeso natural that many consumers do not realize how much they have charged, nor that it will fetch them forever to pay that debt off. Seventy percent of respondents to a recent ABA survey said that it would take them at least two months to pay off their holiday expenses. Unfortunately, in that location are more ways to use a credit card than ever before, making it very hard for consumers to refrain from spending a lot of money. Shopper can charge groceries, teeth cleanings, and on-line servicesto their credit cards. Introduction of rebate cards which offer users credit towards new vehicles, frequent-flyer miles,