The Causes of Overspending with credit cards
The Causes of Overspending with credit cards
In recent years, overspending with credit cards has become a growing trend amongst young people. In my point of view, the causes of overspending with credit cards are convenience to purchase, credit cards’ postponable payment and minimum monthly payments.
Convenient to purchase is one main cause of overspending with credit cards. Prescott (2006, p1) states that “Giving a teenager a prepaid credit card or access to a parent's card is fairly common today. It is convenient, but can lead to some startling monthly bills”. Since the young may not have enough self-control as adult, the function of credit cards would easily influence their finance and other problems. Besides, debt can impact some of the young while they are in college, such as affecting concentration on their studies, working a part-time job to fulfill their financial obligations or even leading to drop out of college (Levesque Ware, 2002). Also, online shopping and group purchasing are very common in recent years, these may lead the young to spend well beyond their means. Young people can easy to purchase in everywhere or even on the street, so that the convenience can cause overspending.
Besides, Credit cards’ postponable payment is another cause of overspending. According to Evans (2002) the “buy now, pay later” concept seem like dealing with the devil, because it is a mistake for customers to spend with the credit, also the conditions which provided by the lenders may cause the customers consume on credit illogically. Even the function of “buy now, pay later” can provide the necessary money to satisfy the emergency to buy now, but the customers must be anxious about the paying later, specifically the young. Besides, it should be a lure towards young people that they would tie up their future income, as well as they know that they can pay the bill after a month or even more. The postponable payment can increase young people’s purchase intention to
In recent years, overspending with credit cards has become a growing trend amongst young people. In my point of view, the causes of overspending with credit cards are convenience to purchase, credit cards’ postponable payment and minimum monthly payments.
Convenient to purchase is one main cause of overspending with credit cards. Prescott (2006, p1) states that “Giving a teenager a prepaid credit card or access to a parent's card is fairly common today. It is convenient, but can lead to some startling monthly bills”. Since the young may not have enough self-control as adult, the function of credit cards would easily influence their finance and other problems. Besides, debt can impact some of the young while they are in college, such as affecting concentration on their studies, working a part-time job to fulfill their financial obligations or even leading to drop out of college (Levesque Ware, 2002). Also, online shopping and group purchasing are very common in recent years, these may lead the young to spend well beyond their means. Young people can easy to purchase in everywhere or even on the street, so that the convenience can cause overspending.
Besides, Credit cards’ postponable payment is another cause of overspending. According to Evans (2002) the “buy now, pay later” concept seem like dealing with the devil, because it is a mistake for customers to spend with the credit, also the conditions which provided by the lenders may cause the customers consume on credit illogically. Even the function of “buy now, pay later” can provide the necessary money to satisfy the emergency to buy now, but the customers must be anxious about the paying later, specifically the young. Besides, it should be a lure towards young people that they would tie up their future income, as well as they know that they can pay the bill after a month or even more. The postponable payment can increase young people’s purchase intention to