American Greed Quotes
Most Americans should not use credit cards
Michael Rozier Jr.
COM/172
September 7, 2011
Professor Annotti
University of Phoenix
Most Americans should not use credit cards
With the grip of an anaconda, it has begun to squeeze the very essence out of American consumers around the world. With no control over the grip, this amazing animal has overtaken every corner of society. Powered by greed and a thirst for dominance, this animal has taken claim to countless lives, families, and homes. With this animal on the loose, no American consumer is safe. Albert Einstein once said “Two things are infinite: the universe and human stupidity; and I’m not sure about the universe” (n.d., para. 5). With the growing lack of education and concern for this animal known as credit card debt, there is no choice but to expose it for the destructive animal …show more content…
that it is.
Systemically, American consumers subjected to the herd mentality are lambs for the slaughter for so long that it has become common. With the current credit card users estimated at 176.8 million within the United States and the rate of defaults on credit cards standing at 4.27 %, Americans are living in a country that has a national debt of 14 trillion dollars and climbing (Credit Card. n.d.). Even more alarming is the idea that this is the norm for the American society is astonishing. The weaken state of the economy caused by the failure of the sub-prime housing market and the rising rate of unemployment some consumers are using credit cards to pay bills. Whereas others were encouraged to take out second loans or equity loans on their homes, consumers are forced to face a larger debt to income ratio. However, with credit cards, consumers could pay a bill today and work to pay the card off next week. Credit cards carrying an Annual Percentage Rate (APR) of an astounding 21% or higher have sent consumers drowning in bad debt. Born of an idea known as fractional reserve banking American consumers have been given a loaded and fixed deck with and imaginative hope of winning. This has been a fungi that has begun to rot the infrastructure of our country from inside out. A choice must be made between economy and liberty over perversion and servitude to perpetual debt. The past lack of a checks and balance system amongst credit card issuing companies and consumers, has dealt a blow in which American consumers have taking time again. Until recently, this fight had no referee or ending bout. However, even with the current changes in place the blow that was delivered was a critical one that has knocked the country to its knees. With the average consumer paying only the minimal payments and the mathematics of compound interest the middle, low class consumers are taking the blunt of the blow. With this in mind, Americans have relinquished the title of citizen and taken the title of credit consumer.
With a market value of zero and an unprecedented source in the loss of income credit cards have changed the way that consumers buy, sale, and trade. The national tracking of credit card debt is a difficult business because it has not tracked openly. How is there not a standardize database that holds a model to do such when there is one to keep account of how many calories are in a large fries from McDonald’s? The standardize system used to measure individual debt is known as the Fair Isaac Corporation or FICO score. This company developed the method of taking the entries on a consumer’s credit report and placing it with a numerical value to determine the consumers’ credit risk (FICO scores. n.d). A higher score equates to a consumers ability to pay back a lender in good standing, and a lower score would have a less favorable review. Once a consumer opens a credit card account, the account placed on the consumers’ credit report as revolving debt. Now that is an idea that should send any consumer into a heighten state of alertness because revolving debt is continuous and without an end. High interest rate credit cards carry a hefty price tag concerning consumer credit reporting. Once a consumer is in default on a card, the missed payment reports are sent to the credit reporting agencies. These agencies keep track of individual credit history reports and issue them when requested by a potential lender or employment opportunity that a consumer may have. These issues have caused lingering affects on relationships and livelihood within the consumers’ homes as well. “We never pay it on time that is why we are always paying late fees” Michael’s wife stated as she slams the door shut. The carrying over balances from one credit card to another has consumers trading off there balances in a short-term fix with long term problems. The strain and long-term effect of debt issues within American consumer families has alone been divesting. With 61% of couples saying that, discussions of household finances turning into arguments the affects are apparent (Reynolds. 2011, September 11). Divorce rates among these families are high because of to the immense amount of stress, lack of financial trust and improper finance practices. This has taken such a toll on relationships and families that without a clear solution in sight, the chances of improvement are slim. With a failing housing market and unemployment at an all-time high divorce due to debt issues is climbing. Therefore, is it worth with the power of plastic a consumer can have to pay the utilities bills, rent, and even obtain that big screen television on borrowed money?
Like an addictive drug card swiping has become the compulsive disorder that feels good to consumers. Just as governments have checks and balances consumers should treat there cards just the same. As addicts abuse the drugs they are addicted to consumers abuse the use of there cards. Maxing out card limits, over due balances and minimal payments are attributes of card abuse. Although credit cards have good uses like emergency car rentals, or last-minute needs, using them to pay bills is not a good practice. The consequent of misuse of a credit card has a seven-year reproach that will hang over a consumers head like the rain cloud in cartoons. Planning for events and using better judgment when applying cards consumers will greatly reduce the effects of these.
With this in mind, the use of a credit card in today’s economy has both pros and cons that indeed are measured by the morals of the consumer. Dealing without a credit card can make life easer an alternative to the use of a credit card is a debit card. This particular card is linked to a consumer’s checking account there for when there are no funds available the use of the card ends. Benefits of using debit card over credit cards are there are no annual fees for using them, and the money used is not borrowed. If a consumer can avoid this animal and properly manage debt the outlook is greater than those that choose to say the course and abuse credit cards. Daniel Waldschmidt said “Its not what you are willing to do that will make you successful. Its is what your willing to do without until you get there” (Great Quotes. n.d.). Consumers face many various situations and problems, each requiring a different approach. Cutting the tail off a snake will not kill it only wound it. However, by severing the head of it there is no recovery. By taking control over spending, the power is removed from the animal placed back in the hands of the American consumer. An unknown author said, “The more you take responsibility for your past and present, the more you are able to create the future you seek” (Great Quotes. n.d.).
References
Albert Einstein.
(n.d.). Albert Einstein quotes. Great Quotes. Retrieved from http://www.great-quotes.com/quotes/author/Albert/Einstein
Daniel Waldschmidt. (n.d.) Daniel Waldschmidt quotes. Great Quotes. Retrieved from http://www.great-quotes.com/quote/2087
Unknown (n.d.) Unknown Author quote. Great Quotes. Retrieved from http://www.great-quotes.com/quote/2215861
Credit Card Debt. (n.d.). Credit card debt statistics. Money-Zine.com. Retrieved from http://www.money-zine.com/Financial-Planning/Debt-Consolidation/Credit-Card-Debt-Statistics/
FICO Scores. (n.d.). FICO scores - A brief explanation. Real Estate ABC’s. Retrieved from http://www.realestateabc.com/credit/ficoabb.htm
Risk of Rising. (n.d.). Risk of rising consumer debt. Money-Zine.com. Retrieved from http://www.money-zine.com/Financial-Planning/Debt-Consolidation/Risks-of-Rising-Consumer-Debt/
Reynolds K. (2011, September 11) Is money pulling your marriage apart? CNN Money, retrieved from
http://money.cnn.com/2011/09/07/pf/marriage_and_money.moneymag/index.htm
Michael Rozier Jr.
COM/172
September 7, 2011
Professor Annotti
University of Phoenix
Most Americans should not use credit cards
With the grip of an anaconda, it has begun to squeeze the very essence out of American consumers around the world. With no control over the grip, this amazing animal has overtaken every corner of society. Powered by greed and a thirst for dominance, this animal has taken claim to countless lives, families, and homes. With this animal on the loose, no American consumer is safe. Albert Einstein once said “Two things are infinite: the universe and human stupidity; and I’m not sure about the universe” (n.d., para. 5). With the growing lack of education and concern for this animal known as credit card debt, there is no choice but to expose it for the destructive animal …show more content…
that it is.
Systemically, American consumers subjected to the herd mentality are lambs for the slaughter for so long that it has become common. With the current credit card users estimated at 176.8 million within the United States and the rate of defaults on credit cards standing at 4.27 %, Americans are living in a country that has a national debt of 14 trillion dollars and climbing (Credit Card. n.d.). Even more alarming is the idea that this is the norm for the American society is astonishing. The weaken state of the economy caused by the failure of the sub-prime housing market and the rising rate of unemployment some consumers are using credit cards to pay bills. Whereas others were encouraged to take out second loans or equity loans on their homes, consumers are forced to face a larger debt to income ratio. However, with credit cards, consumers could pay a bill today and work to pay the card off next week. Credit cards carrying an Annual Percentage Rate (APR) of an astounding 21% or higher have sent consumers drowning in bad debt. Born of an idea known as fractional reserve banking American consumers have been given a loaded and fixed deck with and imaginative hope of winning. This has been a fungi that has begun to rot the infrastructure of our country from inside out. A choice must be made between economy and liberty over perversion and servitude to perpetual debt. The past lack of a checks and balance system amongst credit card issuing companies and consumers, has dealt a blow in which American consumers have taking time again. Until recently, this fight had no referee or ending bout. However, even with the current changes in place the blow that was delivered was a critical one that has knocked the country to its knees. With the average consumer paying only the minimal payments and the mathematics of compound interest the middle, low class consumers are taking the blunt of the blow. With this in mind, Americans have relinquished the title of citizen and taken the title of credit consumer.
With a market value of zero and an unprecedented source in the loss of income credit cards have changed the way that consumers buy, sale, and trade. The national tracking of credit card debt is a difficult business because it has not tracked openly. How is there not a standardize database that holds a model to do such when there is one to keep account of how many calories are in a large fries from McDonald’s? The standardize system used to measure individual debt is known as the Fair Isaac Corporation or FICO score. This company developed the method of taking the entries on a consumer’s credit report and placing it with a numerical value to determine the consumers’ credit risk (FICO scores. n.d). A higher score equates to a consumers ability to pay back a lender in good standing, and a lower score would have a less favorable review. Once a consumer opens a credit card account, the account placed on the consumers’ credit report as revolving debt. Now that is an idea that should send any consumer into a heighten state of alertness because revolving debt is continuous and without an end. High interest rate credit cards carry a hefty price tag concerning consumer credit reporting. Once a consumer is in default on a card, the missed payment reports are sent to the credit reporting agencies. These agencies keep track of individual credit history reports and issue them when requested by a potential lender or employment opportunity that a consumer may have. These issues have caused lingering affects on relationships and livelihood within the consumers’ homes as well. “We never pay it on time that is why we are always paying late fees” Michael’s wife stated as she slams the door shut. The carrying over balances from one credit card to another has consumers trading off there balances in a short-term fix with long term problems. The strain and long-term effect of debt issues within American consumer families has alone been divesting. With 61% of couples saying that, discussions of household finances turning into arguments the affects are apparent (Reynolds. 2011, September 11). Divorce rates among these families are high because of to the immense amount of stress, lack of financial trust and improper finance practices. This has taken such a toll on relationships and families that without a clear solution in sight, the chances of improvement are slim. With a failing housing market and unemployment at an all-time high divorce due to debt issues is climbing. Therefore, is it worth with the power of plastic a consumer can have to pay the utilities bills, rent, and even obtain that big screen television on borrowed money?
Like an addictive drug card swiping has become the compulsive disorder that feels good to consumers. Just as governments have checks and balances consumers should treat there cards just the same. As addicts abuse the drugs they are addicted to consumers abuse the use of there cards. Maxing out card limits, over due balances and minimal payments are attributes of card abuse. Although credit cards have good uses like emergency car rentals, or last-minute needs, using them to pay bills is not a good practice. The consequent of misuse of a credit card has a seven-year reproach that will hang over a consumers head like the rain cloud in cartoons. Planning for events and using better judgment when applying cards consumers will greatly reduce the effects of these.
With this in mind, the use of a credit card in today’s economy has both pros and cons that indeed are measured by the morals of the consumer. Dealing without a credit card can make life easer an alternative to the use of a credit card is a debit card. This particular card is linked to a consumer’s checking account there for when there are no funds available the use of the card ends. Benefits of using debit card over credit cards are there are no annual fees for using them, and the money used is not borrowed. If a consumer can avoid this animal and properly manage debt the outlook is greater than those that choose to say the course and abuse credit cards. Daniel Waldschmidt said “Its not what you are willing to do that will make you successful. Its is what your willing to do without until you get there” (Great Quotes. n.d.). Consumers face many various situations and problems, each requiring a different approach. Cutting the tail off a snake will not kill it only wound it. However, by severing the head of it there is no recovery. By taking control over spending, the power is removed from the animal placed back in the hands of the American consumer. An unknown author said, “The more you take responsibility for your past and present, the more you are able to create the future you seek” (Great Quotes. n.d.).
References
Albert Einstein.
(n.d.). Albert Einstein quotes. Great Quotes. Retrieved from http://www.great-quotes.com/quotes/author/Albert/Einstein
Daniel Waldschmidt. (n.d.) Daniel Waldschmidt quotes. Great Quotes. Retrieved from http://www.great-quotes.com/quote/2087
Unknown (n.d.) Unknown Author quote. Great Quotes. Retrieved from http://www.great-quotes.com/quote/2215861
Credit Card Debt. (n.d.). Credit card debt statistics. Money-Zine.com. Retrieved from http://www.money-zine.com/Financial-Planning/Debt-Consolidation/Credit-Card-Debt-Statistics/
FICO Scores. (n.d.). FICO scores - A brief explanation. Real Estate ABC’s. Retrieved from http://www.realestateabc.com/credit/ficoabb.htm
Risk of Rising. (n.d.). Risk of rising consumer debt. Money-Zine.com. Retrieved from http://www.money-zine.com/Financial-Planning/Debt-Consolidation/Risks-of-Rising-Consumer-Debt/
Reynolds K. (2011, September 11) Is money pulling your marriage apart? CNN Money, retrieved from
http://money.cnn.com/2011/09/07/pf/marriage_and_money.moneymag/index.htm