It was during the 1980s, that consumers begin to shift from cash and checks to credit cards. The reason for this is often attributed to the beginning of the information age. How to use computers have become more prevalent, credit cards quickly followed. It is estimated that the number of people using credit cards during this time surpassed those who use cheques and cash in one year. The use of debit cards has grown tremendously, because it just fine.
The rise of debit cards are a direct consequence of the problems seen with the use of credit cards. Statistics show that the average American consumer is obliged to about $ 9000 in credit card debt. Many people made a mistake, thinking that they used their own money when they use credit cards to make purchases. It is easy to forget that this money belongs to credit card companies, and they simply allows it to borrow promise you will pay it back. The average interest rate on credit card debt in the U.S. is around 14%.
It is easy to see credit cards as "easy money". In the end, you do not have to work for it, and it did not have the same effect on you that cash is. Statistics show that people tend to spend money other people much faster than their own. Recent data also show that Americans are paying even less their debts than ever before. He was recently on news that the savings rate for Americans is negative, is about -0.05%.
Although we live in an electronic age, being irresponsible with your credit card is a great way to end up periods ranging from headaches. Many high-quality jobs now require you to have good credit, and difficult to obtain a mortgage or a car, if you have poor credit. That is why it pays to be responsible, how you manage your finances. The best way to stop borrowing money and using your own funds for the purchase.