Biz Development
by Laurus Nobilis

2011
2010
2009
2008

Credit cards have the image of product for sophisticated and successful people. Bank advertisement call us to be „cool“ and „in“ by paying with credit cards, while cash payment is „obsolete“ and „out“. The truth is right opposite – credit cards is for poor people that are deep in depts. Credit cards help them to sink even deeper in debts.

American legislation allows people to declare personal bankruptcy. The 69 percent of personal bankruptcy is related to overuse of credit cards. The reason why people over use credit cards is the fact that they give false „power“ to people, since they are able to buy more than they can do for the cash. But fact is that credit cards gives false illusion, similar to drugs. Temporary pleasure is soon replaced by bitterness of debts. The biggest problem with debit cards is when you get to the limit on one card, you are able to get another card and get even deeper in debts.

Credit cards, debit cards, revolving credit cards etc. have magical influence on people. They make you to be less logical and more emotional. If you want to buy something, but you do not have enough cash, the answer is simple – use credit card. In essence the credit cards can be useful, since you can buy when you do not have cash, you can buy online and they give you convenience of not carrying the cash with you.

Unfortunately, the credit cards bring more danger than benefits. Average consumer cannot control himself easily and is falling into trap of advertisers and merchants. There are so many things that you can buy. If you are out of cash, no problem – you have credit card. No money on your balance, no problem – you can use your credit limit- Bank Interest? Peanuts. At least people think that interest is insignificant, compared to luxury of having a new cell phone or piece of cloth. Unfortunately bank interest is making things even worse, since you owe the money that you borrow, but you also owe the interest too.

There is something magical with credit cards, since people use them easier than when they use cash. When using the cash people are emotionally attached to bills that are they giving away, since they remind them to all effort and time spent on earning them. But when somebody is using credit card, there is no money visible. Everything is so easy and clean. You just sweep your credit card and that's it. Similar ease of wasting money can be seen in casino where people gamble for chips. Without real money being on table, people feel more freely in losing the money, because that is only the plastic.

Another false myth attached to credit cards is the illusion that you are safe if you carry credit card instead of cash. Credit cards can be easily stolen too. The problem lies in the fact that people keep PIN close to the credit card ( wallet ). If the thief stole the credit card and the PIN, than he can really ruin you.

Credit cards have their purpose, but do you really have the rules established and discipline to adhere to these rules when using credit cards?