Dangers of Credit Cards
Adedoyin Okanlawon
10/14/2012
The Truth about the Life Changing Credit Card Business
The word credit is derived from the Latin word Credo. The word credo means "I trust you". It is defined by Gide as" an exchange which is complete after the expiry of a certain period of time after payment. As defined by a freelance writer named Barb Nefer, A credit transaction is a common financial activity, often conducted with a credit card. Credit gives you the ability to buy things you cannot afford to pay for all at once, and you can also use it for convenience. You must eventually pay the money back, and most credit purchases incur interest charges in addition to the original amount. The credit card industry, a most lucrative industry indeed, has spiraled out of control over the past decades. Shockingly! This industry seems to have grown out of the control of the government itself. According to the Federal Reserve, Total U.S. revolving debt (98 percent of which is made up of credit card debt): $801 billion, as of December 2011. The average credit card debt per household is said to be $15,799 and the average household debt is said to be $54,000. There are 609.8 million Credit cards held by U.S. consumers (Source: "The Survey of Consumer Payment Choice," Federal Reserve Bank of Boston, January 2010). This massive and revolutionary breakthrough in the credit card business started in an unusual and unlikely place, which is South Dakota. South Dakota is where the credit card industry really took off. Today a town named Sioux Falls in South Dakota is one of the major credit card processing centers in the country. A quarter of a century ago times were hard in South Dakota and Bill Janklow was the governor at the time. Banks were hardly giving loans of any kind in South Dakota at that time. In order to get the banks to issue loan the governor decided to eliminate its historic cap on interest rates known as “Usury Laws” which are Regulations governing the amount of interest that
10/14/2012
The Truth about the Life Changing Credit Card Business
The word credit is derived from the Latin word Credo. The word credo means "I trust you". It is defined by Gide as" an exchange which is complete after the expiry of a certain period of time after payment. As defined by a freelance writer named Barb Nefer, A credit transaction is a common financial activity, often conducted with a credit card. Credit gives you the ability to buy things you cannot afford to pay for all at once, and you can also use it for convenience. You must eventually pay the money back, and most credit purchases incur interest charges in addition to the original amount. The credit card industry, a most lucrative industry indeed, has spiraled out of control over the past decades. Shockingly! This industry seems to have grown out of the control of the government itself. According to the Federal Reserve, Total U.S. revolving debt (98 percent of which is made up of credit card debt): $801 billion, as of December 2011. The average credit card debt per household is said to be $15,799 and the average household debt is said to be $54,000. There are 609.8 million Credit cards held by U.S. consumers (Source: "The Survey of Consumer Payment Choice," Federal Reserve Bank of Boston, January 2010). This massive and revolutionary breakthrough in the credit card business started in an unusual and unlikely place, which is South Dakota. South Dakota is where the credit card industry really took off. Today a town named Sioux Falls in South Dakota is one of the major credit card processing centers in the country. A quarter of a century ago times were hard in South Dakota and Bill Janklow was the governor at the time. Banks were hardly giving loans of any kind in South Dakota at that time. In order to get the banks to issue loan the governor decided to eliminate its historic cap on interest rates known as “Usury Laws” which are Regulations governing the amount of interest that