Choosing Paper Over Plastic
Consumer Credit is defined as a debt that a person incurs for the purpose of purchasing a good or service. This includes purchases made on credit cards, lines of credit and some loans. Simply speaking, consumer credit is essentially a sum of money obtained by an individual to make a purchase of a non-investment good whose value depreciates quickly. Examples would include clothing, entertainment, automobiles and recreational vehicles. Some consider it a blessing that credit can be so easily obtained, while others see it as an impairment of our society. Cards can be crucial in cases of emergency yet millions of people are living beyond their means, drowning in debt while foregoing the discipline of saving for
Instant gratification is the desire to experience pleasure or fulfillment without delay (Vernimmen 20). Foregoing instant gratification and insisting on a savings plan is imperative to our societal expectations. Many people see credit as free money and get into debt because of their consuming passions. Consumer marketing has done a fine job of convincing us that we have to have the latest clothes, the best shoes and the newest gadgets. Creditors have exploited this desire through buy it now, pay later schemes (Morris 08). While some may dismiss these issues as someone else’s problems, overwhelmingly we have developed a societal issue where a substantial subsection of society is drowning in debt and not able to support themselves in retirement. In Alexander Daskaloff’s book: Credit Card Debt, an example of a should-be-retired financial executive is provided. “Because of a disappointing investment decision, he has accumulated a large amount of credit card debt. He currently owes $20,933 on six credit cards at an overwhelming 17.35% interest rate. Unfortunately, instead of saving for retirement, a substantial amount of his income is going toward his credit card debt. Because of high interest, he sees very little of the debt declining, which worries him as he approaches retirement.” (Daskaloff 7) Unfortunately this example has become entirely too common in our society. In a capitalist society, we have a responsibility to each other, if able, to take care of ourselves and plan for our own financial futures. In this example, it is particularly telling that the subject is a financial advisor. He understands the system and the pitfalls, yet was still trapped by the desire for instant gratification. Like so many, he over used his credit rather than planning and saving for retirement. Ultimately, we have a responsibility as
A credit transaction is when a consumer purchases a good or service and pays in the future. The use of a credit card can be useful as it is convenient, saving time and trouble. However, due to the extensive use of credit cards in Australia, legal issues has arisen such as the inability for consumers to repay their debts, unfair contract terms and inadequate procedures of credit providers. Prior to 1996, the Credit Act 1984 (NSW) was introduced as the only piece of legislation that regulated customer credit. However, because it only offered protection for less than 20% of consumers, the Consumer Credit Code was established in 1996 under the Consumer Credit (NSW) Act 1995 (NSW). This code is a set of uniform national rules about consumer credit transactions and has been adopted by all governments throu...
In his work, “Overselling capitalism,” Benjamin Barber speaks on capitalism’s shift from filling the needs of the consumer, to creating needs. He tells how it has become easier for people to borrow money, so that they no longer get as much satisfaction from affording necessities. He says capitalism can be good when both sides benefit, but it has overgrown and must continue creating needs, even though the only people who can afford these needs don’t have any. According to Barber, people are still working hard, but them and their children are becoming seduced by unneeded shopping. He states that people are becoming more needy, and losing discipline in their lifestyle. Additionally capitalism must encourage easy and addicting shopping to
Have you ever felt like you are spending too much money at a time, on pointless items? Statistics show that American’s consumption rate of goods has increased by forty-five percent in the last twenty years (Statistics-Consumption/quality of life pg. 194). Americans are experiencing a thing that is many times known as “Affluenza”, this is when someone buys more items, such as clothes, cars, houses, or any unnecessary items. Many people talk about this so-called “Affluenza”, like it is a medical term. The word Affluenza is pretty much saying that people make money and work hard for their money and they like to buy nice things, because they can and they have the money to. They are fortunate enough to be able to have these nice things for themselves because they work so hard for it. Many Americans are not satisfied with their positions because of false ads, selfishness, and jealousy. Some celebrities, some of the wealthiest people on the planet have committed suicide because they are not happy with what they have and they feel like they need more items, when really they have everything they need to be happy, but they suffer from Affluenza and make these bad decisions.
What would you do if you had $15,000? Would you give some to charity, or perhaps buy a new car? Maybe you could finally get that watch or purse that you’ve always wanted. The problem is that many people thought they had this much money. Unfortunately, it was all on a credit card and now they are paying 18% extra on their purchases; in some cases, even more than that. That equates to you paying roughly $18,000 dollars for something that only cost $15,000. Many Americans are faced with these bills today, but there is hope. There are people out there who want to get us out of debt, and back on our feet. This essay will look at two of those people; Dave Ramsey and Suze Orman. You will have to decide which will work best for you. Hopefully
The United States lending industry’s main focus has become accentuating profits; therefore, they have made it impossible to live without a credit card in today’s economy and to avoid being taken advantage of by the banks. James Scurlock, director and producer of the film, “Maxed Out”, devotes his movie to informing the audience of the credit card system and its many flaws and gives examples of people who are majorly affected by the pressure the lenders apply. Throughout the movie, numerous statistics, and expert testimonies are presented, as well as comparisons and appeals to emotion. Through the use of this support Scurlock, is able to convey his overall message and propose numerous minor arguments that clarify his argument and make it more credible.
As of today America’s national debt is 18 trillion dollars and approximately 5 trillion of that is held by foreign countries including China and Japan. In the last few years we seem to hear more about balancing the country’s budget and politicians raising the debt ceiling so we can pay on this debt. How have we gotten into such an overwhelming and complicated problem with our nation’s money? Ironically the same can be said for our individual household debt as well as making the same mistakes and trying to find creative ways to be accountable to our financial responsibilities. Teaching the basics of personal finance n our schools can culturally change our financial practices, leading to a more financially literate public and a stronger, more stable, America. If the younger generations can become more financially savvy, then there is an opportunity for our nation as a whole to become less dependent on debt to survive.
Credit card debt is one of this nation’s leading internal problems. When credit was first introduced, and up until around the late 1970’s, the standards for getting a credit card were very high. The bar got lowered and lowered to where, eventually, an 18 year-old college student with almost no income and nothing to base a credit score on previously could obtain a credit card (much like myself). The national credit card debt for families residing in the United States alone is in the trillions (Maxed Out). The average American family has around $9,000 in debt, and pays around $1,3000 a year on interest payments (Maxed Out). Many people have the concern today that these interest rates and fees are skyrocketing; and many do not understand why. Most of these people have to try to avoid harassing collecting agents from different agencies, which takes an emotional and psychological toll on them. While a lot of the newly recognized “risky” people (those with a doubted ability to make sufficient payments) are actually older people who have been customers of certain companies for decades, the credit card companies are actually consciously targeting a different, much more vulnerable group of people: college students. James Scurlock produced a documentary called Maxed Out on this growing problem, in which Senator Jack Reed of (Democrat) of Rhode Island emphasizes the targeting of college students in the Consumer Credit Hearings of 2005
Even though the wage market had increased, the need for fancy things made it almost impossible for a family to have enough money left over to survive. This demand for the goods but not enough money produced a technique used by manufacturers to bring in more customers, consumer credit. Today, this method of shopping is used by every American everywhere at some point in their lives. Consumer credit is what is known today as a payment plan.
Credit cards are something that are almost needed in everyday life now, as most dont have the money available to purchase a car or house and so need credit, thus needing credit cards to help build that credit. Those cards are hard to handle, and receiving applications in the mail daily, and commercials appearing on television don’t seem to make the struggle of staying away any easier. This starts to spark an interest. So people begin to think, "I think I 'm responsible enough to get a credit card, I 'll only use it for emergencies." Then the application process begins and it may take a couple times to finally be approved for one. This only makes it worse, of course, because realizing how long a credit card wasn’t applicable to life, but now
“Proper society did not think about making money, only about spending it.”, said Barbara W. Tuchman. This quote shows our real world, and the people that spend money, but they forget about the value of money. Nowadays people want more that they have. They forget how many things they have, and how much money they spend. Most people when they see other people having something better, and in that moment they want to have it also. Also, people forget how hard they got that money, but how easily and quickly they spend it. In the article “The treadmill of consumption” by Roberts, he says that people are willing to go into debt to buy certain products and brands. That is right that people can do crazy things to buy certain goods.
Making improvements on our financial literacy results in a wave of impacts on our economy and the financial health in our society because of responisble behiavior with our finances. These modifications to our behavior are neccesary because it let's us address primary cultural problems, for example over-credits on your purchases, mortgages possibly resulting in debt, dealing with expectations on inflation and also planning on your retirement.
Consumerism has always been a big part of society back in the golden days. In today’s society, the ongoing debate of wants and needs are not justified by an individual’s wealth, but it is rather opinionated by the generalized public. Not only are the consumers getting caught in this mess, but many retailers are being sucked in as well. Retailers, have to stay up to date with the latest trends, to make sure they get their products across. Human identity is no longer determined by how much a person makes an hour, but by the commodities they possess. Consumers are so centralized on the materialistic items, that they forget what is more valuable and important. Unfortunately, the frivolous consumption has taken over the
You have a choice of paying by cash, debit card, online account or credit card. If you do not have money in your bank or online accounts, then either you go without, or you use your credit card. But, what about the people who have money in their bank account and still use their credit card.
Credit plays a significant role when it comes to consumer spending, but can have a significant impact if misused. It doesn’t take much for consumers to get in over their head with the overuse of credit, credit debt can quickly mount if left unchecked. According to Stinson (2016), “The road to a credit card debt pileup is often paved with spending that seemed like a good idea at the time. But too many well-intended moves can lead you into a financial ditch and ruin your credit” (Stinson,
The phenomenon of impulse buying is becoming increasingly commonplace in developed countries. Our culture of consumption makes us less likely to resist temptation and consider the consequences before purchasing things. The impacts could be varied dramatically depended on where it takes place. For instance, the things that you purchase impulsively could be a bar of chocolate; however, it could also be a Louis Vuitton handbag and the consequences would be much severe. Hence, a lot of researchers are interested in studying the causes of this phenomenon in terms of different parameters such as age and gender. In relation to gender, researchers attempted to find whether there will be a gender difference in impulse buying and the possible