In the United States, taking credits have becoming a trend – a worrying one. Americans’ debt levels have dramatically continued to increase since the 80s. During this time, the use of credit cards is greatly increased and credit card companies begin to seek ways to get their products to consumers with various aggressive marketing methods.

Also during the 80s, consumers start to shift from cash and checks to credit cards. As the use of computers and the Internet have become more common, credit card industry followed the growing trend. During this time, more people are estimated to use credit cards, compared to those who were using cash and checks. Followed the credit cards counterpart, the debit cards have also grown exponentially in use.

The impact of the growth of the credit cards industry is devastating. Statistics show that on average, each American consumer owes approximately $9,000 in credit card debt. The ease of use of the credit cards has led many people to illogically think that they are using their own money when they make purchases with credit cards. People forget that they are actually borrowing the money from the credit card companies who charge a whopping 14% (the US average credit card interest rates owed.)

It is easy to be led to think and view credit cards as being “easy money.” You don’t have to work for it, and it doesn’t impact you the way cash does (you can run out of money, but not seemingly on credit cards.) Statistics show that credit card users have an inclination to spend other people’s money much faster than their own money. Recent trends also show that Americans are paying even less on their debts than ever. The news also reported that the savings rate for Americans is negative, at about (minus) 0.05% – an interesting, yet worrying trend.

Being irresponsible and careless with your credit cards is an excellent way to end up with debts that could stuck with you for a lifetime. Business financing for business start-ups, getting mortgages, applying for car loans and applying on high-end job opportunities today require you to have good credit rating, if not excellent. This is the reason why being responsible with your personal finances can save you from future ‘adversities.’

Last words – If you can’t handle your urge to drain the life out of your credit cards, cut them and stop borrowing money using credit cards (while paying the minimums to pay your debts) and start using your own money to make purchases.

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