Credit Card Counselling

Credit cards have become a familiar feature of our modern lifestyle and it is difficult to imagine our modern economy functioning without them. Credit cards and store cards are no doubt very important for consumers as well as retailers as using checks or carrying cash is time consuming compared to retail-oriented electronic payment technology. One of the reasons for the fast increase of this phenomenon is that people think that carrying “plastic money” is easier than having cash or a checkbook in their wallets or purses due to its tiny size and another reason according to Ryan (2009) is that customers like to use credit cards because of its better services, regular charge and department stores receive advance notices of sales and special offers that are not available to general public. Further, if there is a problem with a purchase payment can be resolved. Credit cards also provide great perks and you can earn cash back or rewards for your purchases. They serve as tools to help you build credit which is important if you want to buy a car or a house one day. Used responsibly a credit card is a helpful financial tool, but the availability of cards induces compulsive shoppers to satisfy desires for buying and hence overspend. Many people use their credit cards without thinking about how they will pay back what they borrow. Buying stuff they want immediately without paying immediately can be a tempting scenario. This leads to accumulated interest and overburdened debt. Another reason for credit card debt is the rising prices and low wages. Credit Card Debts can accumulate for numerous reasons like unforeseen medical bills, divorce or loss of a job. According to Federal Reserve “After the US economy mired a recession in 2008, the outstanding consumer revolving debt- mostly credit debt hit the all-time peak of 1.021 trillion in June.”