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Unformatted text preview: Most Americans should not have credit cards Robert Baney University Composition and Communication II/COMP/156 10/25/10010 Linda Rdriguez Most Americans should not have credit cards. Even though people should not have or use credit cards, most Americans can successfully use credit cards. Most people make purchases that they cannot afford financially. When using credit cards to make purchases, the card holder is charged a very high interest rate. If the card holder does not pay double the minimum monthly payment it will take forever to pay off the bill. Credit card balances continue to collect interest even if the bill is paid off and there are still charges from interest. It does not sound right people are charged interest on the interest they were already charged. “Seventy six percent of Americans have credit card debt; adults 55 and older are more likely to have credit card debt at 73 percent.”( Salmon, Felix 2010)If you do acquire credit card debt it is important to make sure to pay at least the minimum monthly payment or more if possible to maintain a healthy credit score. The effects of large amount of people in debt effects the economy in a negative way. “It is widely reported that the average American citizen owes nine thousand dollars or more.”( Roos Dave n.d)It is amazing how many people are in debt and how fast it can spiral out of control. The Federal Reserve releases an annual report with the numbers for Americans and their debt. The October report for 2010 reported an amount of 27.7 Billion dollars in consumer debt. Ultimately debt cannot grow to more than the household’s total income. The Federal Reserve reports the average American debt is 14.7% there total income; this amount keeps growing over time. A major rise in consumer debt will lead to less spending, less spending leads to company downsizing and leads to fewer jobs. If Americans allow their spending to continue to bring down this fragile economy we will not survive. This world we live in is run by money and greed and this fragile economy we will not survive....
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This note was uploaded on 08/18/2011 for the course BUSINESS 212 taught by Professor Fred during the Spring '11 term at University of Phoenix.
- Spring '11