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
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.
Calder’s Thesis for this book follows the development of American consumer culture from its unorganized infancy around the 1890’s to about the 1940’s. There are several references to credit and debt outside this range as a reference to where we started and w...
“The Total Money Makeover” is radio star and financial speaker Dave Ramsey’s viewpoint, ideas and techniques on the financial world put into words that are not only simple, but super helpful to those seeking motivation in their financial lives. Throughout this book Dave Ramsey projects his attitude on how to begin a debt free life. In this particular book Dave Ramsey constantly presents the ideas of an emergency fund, myths and truths, savings, loan and credit card use. Out of all these chapters the most important and useful information I learned was the obstacles in getting to a debt free life, Ramsey’s Seven Baby Steps and the priorities of money.
There is a disease that is sweeping the U.S. at an alarming pace. It is called affluenza it is very contagious and growing at frightening rates. In 1997, an amazing 1.1 million debt plagued spenders filed for personal bankruptcy that was a 28.6% increase from '96. Economists predict another 1.6 million to file by the end of this fiscal year, (Shop 'til We Drop [STWD], 1997). These are two vivid examples of the amazing rate at which affluenza is growing. These numbers are occurring despite the strong economy and perhaps because of it. With the economy in the U.S. going so well credit card companies are issuing more credit. Consumers are then using their new found credit to buy without even thinking of how they will pay for the products. They get the credit cards because of the appealingly low 5.9% introductory rate and go for it, but the credit card companies usually run those rates up to 18% or more in the first six months before the consumer pays off the purchase, (Insight into the News IIN, 1997). This in turn leads consumers into over extending themselves. Although 96% of all consumers are using credit cards responsibly according to American Bankers Association '97, the typical person who files for bankruptcy takes home less than $20,000 a year and has more than $17,000 in credit charges and of that's not overextending oneself what is. It seems that debt and affluenza go hand in hand and that combination can't be good for relationships.
“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 than they have. They forget how many things they have and how much money they spend. Most people when they see people having something better, they think that they need it also. Also, people forget how hard they get 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. Sometimes people
Webster's dictionary defines consumerism as "the economic theory that a progressively greater consumption of goods is beneficial." today we are surrounded by a culture of things and possessions:a materialistic world.consumption of materialistic goods has encroached upon every sphere of our lives and we don't even realise it.at first products had a value of necessity in our lives.but now they are sign of choice, social status and identification.the more we advance technologically and socialy the more we need products to keep up with the times.but do people really need all the things they buy?consumerism today is all about people feeling the need to buy more and more material goods to attain some sort of satisfaction.
When compared to countries with a lower amount of national debt, such as the United Kingdom and Sweden, America seems to be built on a foundation of materialism. American materialism influences its society to believe that the more things someone owns, the happier she will be. Many Americans insist on ownership of goods and services, despite how expensive some may be. Even if an individual lacks the necessary funds to afford said goods, however, she can still purchase them by using credit. Credit is money that a bank or business will allow a person to use, provided she reimburses them in the future. The existence of credit encourages people to spend more than they can afford to, ultimately rendering the borrowers slave to the lenders. Abusing credit results in debt, which is a problem that plagues almost every American through most, if not all, of their life. Bad credit and debt are among the worst of problems in America because it contributes towards a progressively unstable state in the economy and prevents many Americans from fulfilling their financial dreams.
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.
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,
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.
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.
Yes, I was being honest when I was charting my spending habits because I haven’t done a budget that lasted a week before, and I wanted to get an estimate of how much I spend in a week. It was an interesting task to be aware of how much I was actually spending by having real numbers to look at in an organized spreadsheet. The spreadsheet itself was very simple and direct which made it easier to analyze. By lying about my spending habits, this assignment would have been counterproductive since I would have been avoiding facing the truth about how much I spent that week. Instead of being dishonest and trying to avoid that amount of money I spent, I was honest when I was charting my expenses since I wanted to get an actual estimate, even if this
After one month of tracking my income, I have learned a little more about my spending habits. I am already aware of most of my spending habits, and where I most often slip up. A little on the background of my spending, I rarely use cash. There are two reasons why I do this; the first reason is so that I am not tempted to spend bits of money here and there on snacks and small things. The other reason is that so I can more effectively track my spending with less effort. I have two checking accounts to keep this balanced since on the statements it does not say what the money is specifically spent on. I use one card on essentials and school needs, and the other account is more of a lifestyle account. Although I have done this financial tracking in the past, I was able to reaffirm that I still have some areas of weakness in my spending.