07 Nov How Credit Card Companies Get Rich By Making People Poorer
Credit cards are one of the most widely used modern day advantages. It goes without saying how efficient they are, and the opportunities they offer are extremely important. In our current economy, it is unreasonable to not use loans or to not pay fees in one go when you have the money. What comes with our rising economy are rising prices, which are too high not to notice. These reasons alone are enough to (nearly) discard any other form of payment as obsolete. The simple swipe of the magic plastic makes purchases easy and money available, even money you don’t have. You put it into credit to worry about for another day. The benefit of not only making payments at once but, there are also options for gradual deduction of money for filling in EMIs.
However easy and simple the use of credit cards appear to make purchases, buying products on loans is still risky and a serious. Without taking the proper steps, or planning in advance, interest will accumulate to a grave amount. Individual small payments and “inconsequentially” simple swipes of the credit card are deceiving. All separate payments together are equal to a huge unaffordable purchase, and the connection between a fast swipe and actual money being taken from your account are sometimes forgotten. Not being able to pay off credit card bills can cause the debt to pile up, which could cause an even greater catastrophe in the future.
Credit card companies get richer by the day while their clients get poorer. When interests are constantly cut by credit card companies, the user’s gain a continued dependency on their credit card company, which is terrible for everyone but the company. The more a credit card is used, the more people get comfortable spending through them and the fees get more and more expensive. When a person fails to make payments for large amounts, large sums of interests are deducted, which is the source of income of these credit card companies.
That idea is, unfortunately, even less feasible than buying a lot of stuff with credit. The correct way to deal with finances is by consciously keeping track and mapping out payments. Which is fundamentally financial planning, proper financial planning, which includes skill and knowledge that most people lack. People tend to misjudge the probability of going into debt and end up paying more than expected. This is why there are associations like Consumer Capital Advocates who are in business because of people’s inability to maintain their finances. Consumer Capital Advocates work to ensure that debts that need to be paid by their clients are properly tended to. They set up an escrow account, in order to pile in the money that is to be used to repay the debts, and in most cases, they come out successful in their venture.
Read more about how to reduce credit card debt company .