Credit Card Dangers
North Americans are currently more in debt than any other time in history. One of the major reasons for this: credit cards. It is estimated that North Americans currently have approximately $1.5 billion in credit card debt (most of which, belong to the three major card companies: Visa, Mastercard and American Express). Why has this happened? There is no doubt, that instant gratification is the culprit in most cases. No longer do we want to save up for that item that we’ve cherished for so long. And why should we? When we can simply hand over a small plastic card, and can have it on the spot! The 18-24% interest that we will end up paying on it? Who cares, we’ll worry about that, when we can no longer pay any of the principal, and we are simply paying off the minimum amount of interest each month owed! And what happens when we can no longer pay the minimum? Simple! Go to your bank, get a line of credit at a mere 2-6% interest, and problem solved! Bad credit companies get there money, banks are making a ton of money off massive line of credit loans, and the we are happy because we are know paying a really low interest rate on a massive line of credit, but no longer have credit card debt! Sound familiar? To millions and millions of us it does (or should!), and it is making credit card companies (and banks) more money than anybody could imagine. And who is to blame? Who cares, we’ll worry about it next month!
