This is a very interesting article that I read in the Washington Post. It is about how people are obsessed with credit cards. As we discussed in class credit cards are so easily accessible and being a credit card holder gives us a sense of freedom to shop. However, a lot of us are living in a sense of false consciousness and need to realize that credit cards do not give you the freedom to shop. Instead it enables us to be in debt easier. Phillip Arlington in this article enlightens us that
If you truly want to spring clean your life, it’s time to ditch your credit cards. We all know that plastic pseudo-currency tempts us to buy almost anything today and repay next month, next year or even next decade. And we know that a card’s interest and fees can dwarf the original price of whatever toy, bauble, event or shroud that we or — heaven help us — our kids purchase
I totally agree with Arlington some people view credit cards as cash. They are oblivious to the fact that credit cards are like loans. They go out and buy everything under the sun and do not think about how or when they are going to pay their credit card bills. Arlington also makes a point that a lot of us tend to ignore. He states that
The worst aspect of credit cards, though, is psychological. When you can immediately have almost any consumer good you want, you wind up not appreciating much of anything. You frequently tell yourself, with a prod from advertisers, that “I’m worth it.” You pay for something with plastic, and then, before the bill arrives, it’s off to the next shiny distraction, payable of course with Visa or MasterCard. You end up with more stuff, more debt, and less satisfaction with any one item.
This statement is absolutely true. Some people tend to “shop until they drop” because they think that they are worth it. They buy things that they do not need all because they have a credit card at their disposal. Their homes are filled with boxes of goods that serve no purpose, things that they will never use. If someone enters their homes they would think that they are in a warehouse. Since their homes are lined with unused goods. A lot of online shoppers are guilty of this.
Credit cards were once not that easily accessible. Credit cards holders were once people who had good credit ratings and who could prove that they could and have the financial resources to make their monthly payments. People who did not have a credit card had to save their money to purchase things that they wanted. As Arlington states
Contrast today’s attitude with the ancient 1950s through 1970s, when kids and adults actually had to save money before buying something. If you were a kid, you’d do yard work, save your earnings and then buy that bike of your dreams. Sure, it took time, but you had an emblem of your labors and a reason to actually take care of the thing.
Therefore this was a huge accomplishment when you purchase something. You felt a sense of pride and you saw the benefits of your labor. Unlike today a purchase is just a swipe away. Therefore a lot of people are less attached to the goods that they purchase and tend to care less for them. There is a less sense of ownership. When a purchase is made, most people are thinking about what they can buy next. They are not thinking about the hard work that they need to invest to try to decrease their credit card bills.
Most people need to wake up a face reality and be cognizant of the fact that credit cards are not free money. It increases your debt and often times with all the hidden fees and interest attached you will end up paying a lot more money than if a purchase was made with cash. Arlington supports this point. He states that
Studies show that people spend more if they “pay” with a credit card instead of the cold-water-in-the-face reality of actual cash. Yet it is this reality that we sorely need, to put not just our finances in order but also our attitudes toward consumption. After all, you’re worth it.
I do agree with Arlington we definitely need to put our finances in order. We definitely need to spring clean our finances. Do not be fooled by all these credit cards companies. You don’t need five or six credit cards. If you can’t avoid having a credit card, one or two should be sufficient. If you take out a credit card read all the fine prints. Make sure you pay your credit card bills on time. As the credit card companies are like predators. They ply on people who are less likely to pay their credit card bills on time because these are the people who maximize their profits.
