In 1966 Barclays Bank issued the first credit card to Great Britain, and it changed the way they view credit forever. Instead of savings accounts and nest-eggs and piggy banks waiting to be broken open, they have a huge amount of debt. Instead of saving up for something to buy, they have instant gratification in the form of plastic.
There is the TV they couldn’t wait to buy, the car they just had to have, the sweater that would look great on – but there is also a much more serious kind of debt, the kind that pays for the necessities. Many consumers are paying for not just the things they don’t need, but also for the things they do. Quite common is the story of a two-income household, then one loses their job for whatever reason, and the family is now no longer staying afloat on just one income.
For those, however that are just spending to spend, know that every dime spent on a credit card, you end up paying more. When paying cash for an item, or using your debit card, you are paying for it outright. When you put it on plastic, you are paying for it, the interest on the item, and any other fees the credit card companies see fit to charge. So try to stick to cash, and when absolutely necessary have a card or two just in case of emergency. But those that have 10+ cards are just asking for trouble. ■
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