The Downside to Credit Cards

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When it comes to learning about credit cards, most people do not expect to hear that it can effect a persons overall emotion and wellbeing. By having a credit card close at hand people are able to spend money knowingly but do not realize the implications from their choices. They make decisions that they would not have made otherwise if the consumer paid in cash or the full amount up front on the credited bill. Researcher Greg Davies wrote a paper on the overall behavior of human emotion when it comes to consumer goods. “ His 2003 paper, The Realities of Spending, looked at models of spending behavior and how they were influenced by means of payment . . . The paper identified several theories which could explain why people appear to make irrational decisions when spending with plastic” states Nick Harding, Journalists for the British newspaper The Independent. Davis then continues on stating that the reason for the spender’s interest in credit cards is because it allows them to “decouple” their transactions. They are more willing to spend because they believe that it will be cheaper overtime due to the smaller payments, rather than just paying everything upfront. This psychologically leads buyers into believing that they can have it all without consequences, when in reality this is a false presumption.
Once sucked into this belief, consumers then start to borrow money that the majority cannot afford to pay back on time. When this happens the borrower falls into debt over the years unless they are able to control their spending habits. Credit cards were originally created to help people buy things when it was desperately needed. It was not created for basic transactions but over the years it has changed into our main source of payme...

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...f these financial problems is to read over the regulations and payment guidelines. It has become a necessity for all borrowers to research and be aware of what the credit card company’s want and will do as a consequence to late payments. By not educating themselves, borrowers will be scammed into spending more money then they originally intended to. As long as these consumers spend their money wisely and properly the credit card can work in their favor but until then people will continue to be in debt and spend their money in am unjust manner.

Works Cited

Harding, Nick. "Plastic People: How Credit Cards Changed Our Relationship with Money." The Independent, 10 Aug. 2013. Web. 20 November 2013.
Jose, Patrick Maysan. "How the Credit Card Has Changed America." Post and The Post and Courier, 28 Sept. 2008. Web. 20 November 2013.
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