Credit Cards : Liberty And Debt, For All

Essay by EssaySwap ContributorUniversity, Bachelor's February 2008

download word file, 3 pages 0.0

Downloaded 35 times

Every day, millions of people across this vast land of plenty strive to realize their dreams and take their slice of the proverbial American pie. For some, this is an effortless and rewarding undertaking. For many others who constantly battle recurring finance charges and outstanding balances, this is more of a bittersweet enterprise. As our society changes, the factors that affect us financially change as well. Many financial catalysts exist in this country that can contribute to this wealth of unhappiness such as credit card abuse, excessive gambling, and lack of financial literacy.

The recent inclination of credit card issue and use would most likely receive the most blame for financial failure. The average household credit card debt for Americans ranges from $8,000 to $14,500 , but can be as high as $30,000. One of the main problems with credit cards is that they can be as addictive as alcohol or cigarettes.

A credit card creates a false sense of security in that one can purchase an item and pay for it later even though the funds are not currently available. For the weak and financially irresponsible, this can be a disastrous invitation. Also, many use credit cards as an attempt to resolve other financial calamities perpetuating the cycle of debt. Recent loss of employment can thrust an individual to rely on a credit card to temporarily replace lost income. Rising costs in medical care and the high cost of prescription medications coerce many to rely on credit cards in order to fill voids in insurance policies. As a result of over inflated interest rates and credit card mismanagement, many households are suffering unnecessary financial stress in the United States.

Compulsive gambling is another prevalent cause of money misfortunes in the United Sates. Casinos rake in billions of dollars...