I do not want to sound pessimistic here, but it seems there are no clear signs as to where our economy is going. While politicians continue to debate on which more appropriate course to take, many of us are tripling out efforts to make both ends meet.
To me, although the government and some of the biggest financial institutions are to be blame on the current financial predicament we are all in, we are (on the individual level) to be blamed mostly from our financial woes.
The root could be traced with bad credit loans, and then followed by undisciplined use of the credit cards. I am not entirely against these plastics, but rather on the inappropriate use thereof.
We love convenience, luxury, and things that we do not actually need. In fact, it all begun there. Bad credit loans, unpaid bills, unmanageable mortgages, and bad credits are but results of satisfying our appetites for the good stuff that we cannot actually afford.
Then when we have almost completely mess-up our finances, we get another a lifeline via credit cards for bad credits? Are we just trying to make worse?
However, I must admit (and before I am accused of pontificating here) that in a recession like this, bad credit credit cards can somehow serve their good purpose, at least temporarily. What I mean with good purpose is, paying for obligations that may not otherwise be met by our current income. With a bad economy coupled by your own bad credit history, these type of credit cards are sure haven of rest.
Nevertheless, this time (or should we have exercised the same in this first place when we got our first plastic?) caution and prudence must be strictly observed. The key here is taking the time to compare interest rates, APR (Annual Percentage Rate), Cash Advance Features, miscellaneous fees (such as application, late payment charges, annual fees, foreign transactions, etc.), Rewards and Bonuses. In this case, you might want to check out the credit cards comparison that BadCreditOffers.com publishes.
Common sense dictates that you cannot solve a problem by creating another problem. Vis a vis, you cannot repair a bad credit history, or your growing debts by getting more bad loans and/or wanton credit card usages. Discipline is not an option, but a must these days if one wants to survive, better yet, thrive in this crisis.
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Credit Card Issue
2 comments:
I agree that our credit card usage has gotten way out of hand. I know that we are in the process of getting rid of our credit ASAP. I also know that if it were not for these cards, we would not have many or our necessities today. You noticed I didn't say wants. If a person can live without one of these plastic hindrances, they are much better off financially. Cash is still the best answer for our purchases.
Friends 4 Life!
Eddie
Seems like the industry just keeps doing the same old thing that got us into this mess. So they give out credit to high risk customers, and then they complain that they can't get their money back. Where are their brains?