Credit cards and Bankruptcy

There was a time when credit was not very easy to get. Borrowing money for any reason was actually considered shameful, and being "in debt" was simply scandalous. If people wanted to buy things that they wanted or needed they simply SAVED; they did without those things until they could afford to pay for them in cash. It’s kind of strange, how things have changed!

In pursuit of mammon, those financial institutions have used every marketing strategy possible to make you want something now, not later, after all why wait a lifetime when you can have it now!

Simply put, anyone who wants one can get a credit card. It seems you don't even need a social security number and to prove the point, one man in California decided to make show the stupidity of the whole situation by responding to one of those "pre-approved" ads that came in his email and applied for a credit card in his dog's name.

Under the "age" section he inserted the number "3" and where it asked for the social security number he entered 000-00-0000. The card was given.

It’s alarming that people have become brain washed into not thinking about the consequences of borrowing money using credit cards. It is so, so very easy for people to get into spiralling debt with credit cards.

The banks and credit card companies do a great job, they make you believe that using a credit card is not like you are borrowing money, but that is exactly what you are doing. If you use a credit card to pay for your dinner and a movie, you've borrowed money to pay for the dinner and a movie, and the bill will come due at the end of the month. If you don't pay the balance on a credit card in full, every item that you purchased just cost more because you'll be charged interest. As they say it is easy to borrow – but wait … paying back from funds that you don't have is never easy.

Or put it another way, if you do not make the minimum payment on time, you'll be charged penalties and additional fees.

I know to you - I don't sound like I am crazy about credit cards. I'm really not, but they have become a necessity in today's mobile world. You can hardly make an online purchase without using one.

So where's the answer?  Well here are some suggestions:

1. The answer is to get ONE credit card. At the end of each month, pay the entire card balance.
   
2. Do NOTuse credit cards for everyday expenses.
   
3. Don't buy your groceries or pay for the dinner and movie with a credit card.

Almost all bankruptcies filed today are directly related to credit card abuse. You can avoid that. Students beware of this pitful

The sad thing is that my 7 year old son recently said to me, dad why don’t you buy me the computer game using your credit card – I had to take him to one side and give him a simple explanation of the dangers of borrowing and the fact that you have to pay it back.

It is with much regret that some of us will wonder where did it all go wrong - the lessons of our parent’s generation we have failed to heed – live within your means.

Meanwhile, the shareholders of these financial institutions and there directors continue to become richer at the expense of those who fall into the debt trap.