Disadvantages of Credit Cards
Disadvantages of Credit Cards
Mehmetcan Sevim
070090077
Faculty of Management
Faruk Çetiner
070090005
Faculty of Management
Ceylin Ulusel
020090306
Faculty of Architecture
English 201
Esra Sancak
December 28, 2011
Disadvantages of Credit Cards
Thesis: It is argued that credit cards are beneficial for individuals however they bring many
financial problems, trigger consuming and cause psychological conflicts in long-term
period.
I. Financial A. Penalty rate 1. Late payments 2. Exceeding credit limit B. Transaction fee 1. Interchange fee 2. Foreign transaction fee I. Consumption A. Trigger effects 1. Consumer culture 2. Compulsive buying B. Spending addiction 1. Overspending 2. Indebtedness III. Psychological A. Behavior 1. Compulsive buying behavior 2. Money attitudes B. Mental 1. Depression 2. Self Esteem Finance can be defined as an art which leads to maximize return against risk. Dramatically increase at industrialization required more specific management and revealed many departments of companies such as marketing, sales, human resources. Finance provides pecuniary resources to these departments and also are used for cash flow management. When finance became more important in business life, finance industry emerged. Finance industry provides services related with the management of money. Banking service is the most ongoingness sector in the finance industry. It provides personal, commercial and mortgage loans which is related with credit system. Credit card which works to loan money monthly to consumers, is the most important component of credit system. People can buy goods, services without cash thanks to credit cards. It can be seen that credit card usage is so popular in banking system and
Mehmetcan Sevim
070090077
Faculty of Management
Faruk Çetiner
070090005
Faculty of Management
Ceylin Ulusel
020090306
Faculty of Architecture
English 201
Esra Sancak
December 28, 2011
Disadvantages of Credit Cards
Thesis: It is argued that credit cards are beneficial for individuals however they bring many
financial problems, trigger consuming and cause psychological conflicts in long-term
period.
I. Financial A. Penalty rate 1. Late payments 2. Exceeding credit limit B. Transaction fee 1. Interchange fee 2. Foreign transaction fee I. Consumption A. Trigger effects 1. Consumer culture 2. Compulsive buying B. Spending addiction 1. Overspending 2. Indebtedness III. Psychological A. Behavior 1. Compulsive buying behavior 2. Money attitudes B. Mental 1. Depression 2. Self Esteem Finance can be defined as an art which leads to maximize return against risk. Dramatically increase at industrialization required more specific management and revealed many departments of companies such as marketing, sales, human resources. Finance provides pecuniary resources to these departments and also are used for cash flow management. When finance became more important in business life, finance industry emerged. Finance industry provides services related with the management of money. Banking service is the most ongoingness sector in the finance industry. It provides personal, commercial and mortgage loans which is related with credit system. Credit card which works to loan money monthly to consumers, is the most important component of credit system. People can buy goods, services without cash thanks to credit cards. It can be seen that credit card usage is so popular in banking system and
References: Buttel, A. E. (2003, September 25). Credit card penalty rates:Mistakes that trigger default APRs, from http://www.creditcards.com/credit-card-news/credit-card-penalty-rates Mitchell, S. (2009, May 5). Soaring Credit Card Transaction Fees Squeeze Independent Business, from http://www.newrules.org/retail/news/soaring-credit-card-transaction- Griffin, B. (2003). Reviewed from “The Character of Credit. Personal Debt in English Culture”