Final Paper - In today's economy people should not own or...

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In today’s economy people should not own or use credit cards because of the burden it puts on the American family. In 2008 the number of credit card holders totaled 176.8 (Federal Reserve Bank of Boston, p. January 2010). This is not arguing that credit cards are not good for building credit, yet loans, mortgage, and auto loans are just as good of a way to build credit. The argument comes from the average household 9,840 dollars worth of credit card debt (according to forbes.com). With auto loans a person knows how much and for how long they will pay. With credit cards the more a person spends the higher their payment goes. Unfortunately, if a person falls behind in the credit card payments there may be consequences such as: foreclosure, car repossession, and lose of money to pay for school tuition. The belief among people is that credit cards have been around for a long time, yet this belief is wrong. Until the early 1980s credit cards were reserved for high and upper middle-income households. They were offered to reward the banks’ best customers and served as a loss leader, as most cardholders paid off their monthly balances. At this time credit cards were a symbol of high social status. Now it seems that everyone has a credit card. Each household has four credit cards on average, and 14 percent of household have 10 or more cards (according forbes.com). This is a troubling sign and one that could lead someone to believe that America I s over its head
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Final Paper - In today's economy people should not own or...

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