Credit Card Debt - Who's to Blame?
With the amount of lenders, seemingly tripping over themselves to offer
you a new Visa, MasterCard
credit card or American
Express credit card, and the seemingly easy and swift
availability of debt consolidation loans, can we really say that the
borrowers are at fault for their increasing credit card debt?
Surely we are in the hands of the “pushers” who are
tempting us with faster, easier, cheaper and more beneficial consumer
credit products? If you offer a dog a choice steak, what will the dog
do? In a similar fashion, many lenders are now dressing their credit
products so attractively it can be impossible to turn aside from them.
Whilst this would not be a problem in itself, the situation becomes
dangerous when multiple lends and credit card operators target the same
individual, literally flooding them with fresh credit. The resulting
debt accrued by the individual quickly becomes a problem, leading to
the next step along the path, and on the debt
consolidation loan. Once could argue that this is the
ultimate goal of the credit card companies, drown you in credit until
you cannot borrow any more, and then give you a way to pay it back over
an extended period, locked into a loan. Maximum profit, a vertically
integrated market.
On the other hand, the public must also take some blame upon
themselves, if an individual fails to maintain a sensible level of
debt, or worse still, is unable to judge the effects of increased debt
upon their lifestyle, then they are likely to become one of the debt
ridden masses. It is down to each and every one of us to keep control
of our credit card spending, and not overstretching our monthly budget
by encountering excessive monthly repayments. Remember, debt
consolidation is a last resort, not a logical conclusion, anyone seeing
this form of resolution as a safety net needs to sit back and take a
long hard look at their credit habits.
In a similar fashion, balance transfers are a short term
solution for lowering interest costs, not as a way to free your credit
card balance up so that you can start spending again.
For additional information on credit cards or related topics please visit our library of credit card articles.
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