I just read an enlightening article on the Wall Street Journal's website. I would encourage everyone to be knowledgable on credit card tactics and how they may change prior to the Credit Card Act. Here is a link:
http://online.wsj.com/article/SB10001424052748703438404574597860806674746.html
I'm in my 40s, and was raised by parents and grandparents with Depression-era roots. We had a credit card, but I do not remember them using it often. Since we did not have today's technology array, it was HIGHLY unlikely that we were going to be plunking down $1000 on anything. The TV my parents had when I grew up outlasted my childhood. I have no memory of replacing appliances in the house: they lasted. Clothing and groceries were planned trips, with cash in hand. Even without ATMs, a weekly trip to the bank for cash covered us (and we did not have as much traffic either).
Today, credit cards are more of a necessity than a back-up form of paying for things. Would you carry cash to buy a new computer? Credit card statements provide proof that payment was made. We pay the balance every month because interest rates are crippling.
As a realtor, however, my livelihood depends on the good credit of my clients. I cringe when I hear young people say "Credit Card X gave me $5000", as if it were a gift from a friend rather than a loan shark. These teens are being mailed applications without being taught about how the interest will pile up. By the time they are adults, their first home may be delayed due to mounting credit card debt and student loans.
Adults have big wants, too, and often even bigger debt problems.
Yes, there are emergencies which can wipe a family out for years. But, when you hear about closings not happening because the buyer went out and bought a house-full of furniture on credit just before closing day, you realize that not everyone knows how credit and credit cards work.
I am by no means a credit expert, that is where the mortgage lenders advise clients. However, it does no harm to point out facts as outlined in the WSJ article.
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