In the present world, it is hard to find a person who does not have a credit card still, there are numerous Americans who struggle to pay their routine bills every month. According to me the problem is not just restricted to credit cards or any other problem because the credit cards or any other accounts do not charge themselves. The problem is that a huge number of Americans in economic class are in debt, the reason is credit card companies has implemented such business practices that make people not able to meet their basic needs and pay their rents.
In America, most of the people use credit cards, in spite of this many of them have to learn the difficult ways about the use of credit card and the business practices these companies follow. There are some companies that offer very low percentage on annual basis for the balance they provide. But any payment is missed the annual rate is turned into nineteen to twenty-five annual percentage rate for the remaining balance. These annual rates of credit card can never go down once raised by the companies. A person who uses a credit card and is paying the minimum monthly installments is offered to pay his debt in nine to fifteen years. According to the research, the high-interest rate and the low monthly installments are the business facts which is keeping people in debt and these are the facts which are keeping these companies in business. A brilliant consumer should not use a credit card except in case of an emergency or in any other severe condition or the person should not use so much balance that he is not able to pay back at the end of the month to avoid extra charges.
Another reason behind this is people in America need instant satisfaction, by this they get themselves trapped into the regret of the decision they made while achieving instant satisfaction. According to me, this instant satisfaction can cause the consumer to suffer the after-effects of wanting everything instantly by paying the maximum price of the product.
Media and advertising agencies use various strategies to sell their products, one of them is the use of celebrities in order to do so, the image of celebrity increase the image of the product. The lifestyle of the celebrity portrays the fact that the product has good quality and impact on the global consumers. To some people having a perfect car and well-furnished house, a luxurious lifestyle are also the things of obsession even when they have limited incomes. People dream big like living their life according to their favorite celebrities. Nowadays credit companies have made it easy for the consumer to get their desired lifestyle by spending as much as they want beyond the limit. But this also has a side effect on the consumer which may lead to downfall. People who live beyond their lifestyle suffer a lot at the end. These credit businesses and retail businesses are in the market to make money for themselves. They offer beyond the consumer expectations and in return get huge percentages if the consumers are unable to get it back to them.
According to me, the debt is a long disciplined procedure, even with the help of professionals. People in America should live within their means, which means that they should limit the use of credit card in order to fulfill their desires. These people should think on avoiding the over costly impacts of a credit card in order to gain instant satisfaction. In the conclusion I must say that the companies that offer credit to the consumers are legally holding its consumers, the consumers are bound by the contract whether they are liable to pay them back or not. So one should minimize the use of credit cards.
