"Congress is cracking down on credit companies for what it calls unfair and unethical late fees, interest charges and other penalties that stuff in-debt consumers even further down the financial hole. The level of credit card debt in the United States is at record heights. Total consumer debt in America is nearly $2.4 trillion. Out of that $872 billion is revolving debt, which is essentially credit card debt. The average American household has over $9,300 worth of credit card debt." This is from a Post-Tribune article. To view the article click this link http://www.post-trib.com/business/292482,credit.article. Sorry, this article on the site does not contain all the statistics, but they are on the March 11, 2007 Post-Tribune newspaper.
My opinion
For a long time, I have known about our ability to collect debt from credit cards. Not surprisingly, too much of this debt occurs because people spend their money on non-necessities. While there are billions of people living in poverty, so many people decide to buy cars, flashy jewelry and cars, and expensive clothes. Americans have been taught to live expensive. However, that is not a shock. So many people want to pretend that their rich; when in reality, they are not.
Instead of waiting until we can afford those out-of-our-budget items, we buy them by charging on credit. Notice I said credit. Too many people, especially the youth, believe that credit cards are fast and free money. Unrealistically, they are not seeing the big picture. Because of the need for greed and impatience, people spend unwisely. I guess that is what happens when we live in a culture of “I want it now, and I am not going to wait until I can afford it.”
I am not saying that people should not buy some things that are out of their budget; just be reasonable when buying. Shop around and look for the best deals. Do research on items. Oftentimes, name brand items are not that much better—if at all better, as compared to cheap items, or store (generic) brands. Most importantly, consumers must live on a budget—a wise, flexible budget. Shop within that budget. If someone refuses to shop within that budget, that person wants to blame the credit card companies and their collectors who call continuously. Do not be mad at the credit card companies. They keep people working and employed. Those people have to pay bills too. It is assumed that when a person borrows, that person will pay his or her debt. If people chose to default on their loans, this nation would be bankrupt. So the credit card collectors are doing us, as a whole, an important job, however contradictory that may be.
However, that does not mean credit card companies are always good. Their sneaky advertising tactics help people get in debt. Some of those companies seem like they want their customers to be in debt. No doubt that they are one of the industries that push the “I have to have it now” culture. Not to mention, some companies will charge outrageous fees and interest charges. That only keeps people in debt even more. This situation reminds me of African American’s enslavement and treatment in the sharecropping situation, in which blacks would stay in debt by farming their products and selling them, but the land (with other goods and materials that they would by from the land owners) would cost so much that they would be in debt. Debt from credit cards is a tragic cycle. However, we cannot blame anyone else, at the end of the day, but ourselves for our own debt.
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