Credit helping or hurting can be determined by what side of the fence your on. If you are financial sound individual credit helps being approved for big purchases like houses, cars and boats. Maybe you have the liquid cash, but you earn more with investments compared to the interest paid on your accusations. What’s the deal for those on the other side of the fence?
There is just a small fraction of our population stated above, the rest are the working poor struggling to make ends meet. Credit is like a catch 22 for those folks because without it they are doomed, but it’s a temporary fix. At the end of the day these people are becoming financially raped by their underwhelming salary, extremely substantial inflation, and unreasonable taxation. To survive they should use their credit cards and lines to get basics like food. After awhile the interest and minimal payments become too much for them to deal with. I imagine that the interest’s rates on credit cards are so high to subsidize when customers can not pay anymore. Meanwhile the merchants are paid upfront the whole sum, the financial institutes have made their money through the interest. However, the working poor are collateral damage going bankrupt, taking one for the team !
I feel the government is placing a band-aid on anther already terrific depression. They are using the working poor to support themselves, and the small percentage of those wealthy already. That is the reason they are allowing financial institutes to supply those working poor with credit. It retains the rich getting richer, and the poor becoming even poorer. The actual situation here is people have lost hope, never presuming they’re ever going to save enough money for items they want. They work hard want a better life, and if credit is the only way to achieve so be it. The cost of items is no longer the major factor, it is about monthly credit payments. These individuals also know that if they do end-up bankrupt the government can not take away certain items purchased on credit.
My concept of credit is not to live on but build with. I can guarantee if the working poor made more they wouldn’t be so motivated to buy credit. Credit is good for those with money, but in the future it hurts those trying to get by. Perhaps it’s time for elected officials to produce an economic plan that works for all. Their greed is impacting the well-being of the majority of their citizens.
I say let us make money king again! Research more about Credit and what is does for you, Discover here the best way