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ADVANTAGES AND DISADVANTAGES OF HAVING A CREDIT CARD IN SHORT WORDS
Importance of the buying decision making process
What are some advantages and disadvantages of having a credit card
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However mediocre it may appear, it is the most marvelous plastic ever invented. It can act as a cash substitute when you do shopping. It can give you financial assistance by lending you money whenever you are short of funds. It is today’s the most popular payment method – credit cards. Yet, does it mean that credit card can be a friend with every adult? While people are praising the unique conveniences of credit card, we should not neglect its countless drawbacks that could destroy a college students’ life, including turning college student’s life into a lavish one, leading to bankruptcy soon after graduation and psychological harm caused by the snowball debts.
Firstly, buy-now-pay-later philosophy has been widespread among youth and colleges students who are inexperience, as a marketing strategy of credit-card industry. “Students, like many consumers, often buy items that they do not necessarily need but simply want because they are available and appealing. (Levesque Ware, 2002, p. 108) Thanks to the long interest free repayment period, credit cards turn students to be overspending and a lavish lifestyle because students enjoy the financing liberty given by credit card but few of them take serious consideration on the maintenance of budget. According to the Opinion Survey on Credit Debt and Payment Plans (Chung & Pang, 2013), there are 73% and 57% of people do not notice the interest rate of cash advance and unsettled retail purchase respectively. Moreover, the survey results showed that people owned 3.8 credit cards on average and 30 credit cards at most while more than 50% of respondents insist to go on a journey and to purchase the newest smartphone even they run into debts. The surveys showed that people do not be aware of my...
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...Consultation Group (Hong Kong Trader, 2012). With the prevalence of the online shopping, cardholders’ informtation can be easily stolen by criminals as a result, these unfortunates may have to bear an enormous amont of unidentified debts.
In sum, tempted by the many benefits provided by credit providers, young adults tend to shop with their credit cards to the fullest, as if they have forgotten tha theu will need to pay the bills someday. As soon, students lifestyle turn into lavish one and may get dangerous to trap into bankruptcy and causing serious impact to students’ psychological health condition. It is no dount that self-disciplined people may benefit from credits care by using it wisely. For innocent and vulnerable college students, the defects of credit card actually outweigh its merit and that credit cards is a friend of every adults is beyond dispute.
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.
Many people would agree that our country’s young adults have and continue to incur a lifetime of debt by enrolling in college. It’s become an almost acceptable understanding that if you plan to attend college, you might as well expect to graduate with an enormous amount of debt. Robin Wilson, a reporter for the “Chronicle of Higher Education,” and author of “A Lifetime of Student Debt? Not Likely” suggests student loans are very real and can be life altering.
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
D. Thesis and Preview: It is important to know how to use credit cards to your
...: A Critique of the Global Credit Card Society." International Journal of Comparative Sociology 38:1 June 1997, 77-82.
Malcolm MJ Harris told students that the steps to becoming successfully at a young age he wished someone where to tell him was to avoid using co-signed cards, secured cards, and cards of any type. This is because, with cards you can’t really see how much you are spending and tend to spend more then usual. With co-signed cards, they aren’t particularly your money and because of this, you spend money that
We now live in a society where kids start their adult lives “in the red”, as their debt exceeds their income. (Draut, 2005) 60 years ago this wasn’t the case, as told by Studs Terkel in Hard Times-An Oral History of The Great Depression, “I had no idea how long $30 would last, but it sure would have to go a long way because I had nothing else. The semester fee was $22, so that left me $8 to go.” (Turkel, 1970) Imagine that! 60 years ago tuition was $22 dollars a semester! Furthermore, 45% of adults under 35 state they find themselves resorting to credit card use for basic living expenses like rent, groceries and utilities, (Draut, 2005) adding to their mounting debt. This use of credit puts them into an entirely different category of indebtedness: survival debt. (Draut, 2005) Imagine being forced to borrow to live! (Draut, 2005) If a car breaks down or someone gets sick, the only option available is using a credit card. (Draut,
To start, one considerable solution to help with student debt is working and saving. At this point in life, saving money is an easy strategy due to limited responsibilities and bills. Since many students are not yet independent in terms of living expenses, they are “reall...
Where in 56 million payment cards were stolen and the issues related to the occurrence.
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
Through my research I hope to explore the consequences of education debt on college graduates’ lives, including career choices, consumption pattern and lifestyle choices. Meanwhile, I want to discuss some feasible alternatives to minimize student loan debt. My intended audience will be the American college students and their families. The other audience I want to reach is those education policymakers. The contribution of this research will be to help students better understanding the consequences of indebtedness and making informed and careful decisions on paying for college. Also, it will raise the awareness of education policymakers, prompting them to improve our existing student loan policy. As a college student, how to finance a higher education is closely related to my personal life. Through the research I hope that I can acquire enough information on the pros and cons of student loan, and other options to minimize the student loan debt, so that I can make careful decision on financing my college education.
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 lack of knowledge plays a big part in the debt young people are getting themselves into. Credit cards are often offered to young adults as soon as they get out of high school. Many take advantage of having a credit card without even thinking about the responsibilities that come with it, instead they think about the things they will be able to buy. In “Generation Debt” the author Tamara Draut says that young people are getting into debt younger than ever before. Two of the reasons that are more costly on young students that hit hard on the budget are car repairs, and travel for students who have families and friends in other states (231). From my experience I know first-hand what it was like to be offered credit cards right out of high school, and I didn’t hesitate to get any of them. I st...
The use of credit and debit cards today are taking a tour in the sense that electronic cash is becoming more admissible as the world makes a switch towar...
The Information revolution is changing our daily lives. With the rapid development of computer and internet, online commerce become quite common and plays an important role in the modern world. The online business has booming development in these few years. US online retail sales raised an average of 11% in the first three months of 2009 (“US Online Sales Up,” 2009). The growth of online sales may due to the growing number of consumers who shop online. In the case of Asia, survey reported 77.6% of Internet users have online shopping experiences in 2003 (as cited in To, Liao & Lin, 2007). Online shopping is very different from traditional shopping. Consumers cannot touch and check the product before purchasing it, which means they are at higher risk of fraud than traditional shopping. Consumers also have other concerns such as credit cards security of online shopping. Then questions should be raised: what is the advantage of online shopping? Why people shop online? In following paragraphs, the advantage of online shopping for the consumer and consumer’s motivation to shop online will be reviewed and discussed.