If you are financial sound individual credit helps being approved for big purchases like houses, cars and boats. Perhaps you have the liquid money, but you earn more with investments than the interest paid on your offenses. What’s the deal for those on the opposite side of the fence?
There’s just a small percentage of our population mentioned previously, the remainder are the working poor struggling to make ends meet. Credit is like a catch 22 for those folks because without it they’re doomed, but it’s a temporary fix. At the end of the day these people are becoming financially raped by their underwhelming wages, exceptionally substantial inflation, and unreasonable taxation. To survive they need to use their credit cards and lines to buy basics like food. After awhile the interest and minimal payments become too much for them to deal with. I imagine that the interest’s rates on credit cards are so high to subsidize when customers can’t pay anymore.
I feel the government is placing a band-aid on anther already great depression. They’re using the working poor to support themselves, and the small proportion of those wealthy already. That’s the reason they’re allowing financial institutes to provide those working poor with credit. It keeps the rich getting richer, and the poor becoming even poorer. The actual situation here is people have lost hope, never presuming they’re ever going to save enough money for items they want. They work hard desire a better life, and if credit is the only way to achieve so be it. The price of things is no longer the significant factor, it is about monthly credit payments. These folks also know that if they do end-up bankrupt the government can not take away certain items bought on credit.
My concept of credit isn’t to live on but build with. It just seems that people do not own a lot outright anymore, instead they owe on everything. I can guarantee if the working poor made more they would not be so motivated to buy on credit. Credit is good for those who have cash, but in the long run it really hurts those trying to get by. Perhaps it is time for elected officials to produce an economic plan that is appropriate for all. Their greed is affecting the well-being of the majority of their citizens.
I say let us make money king again! You can learn more from this site here and other sites as well.