Even though credit cards can be helpful to use in case of an emergency, most Americans should not use them because credit cards make it easy to overspend and get into debt. Some of the major reasons that cause people to fall victim to credit card debt are the misuse of credit cards and loans, the credit card companies offering rewards or incentive programs to those consumers who use their credit card for purchases, and the use of a credit card for everyday expenses which can really add up because of high interest rates. Those are just a few of the many reasons why we as Americans should not own credit cards.
Many of credit card companies target “new” adults, meaning they just turned 18. “They will be inundated with credit card opportunities, they’ll be inundated with a lot of special offers and I think at a young age, they need to manage these obligations. They need to learn they should not be spending more than they earn,” says Sheryl Reis, the branch manager of Vancity (2007). At that point most 18-year-olds are eager to take advantage of their new rights. They get their first credit card and most lack knowledge on the terms and conditions and the amount of responsibility that comes along with the piece of plastic. Some young adults use their cards as though it is free money. The misuse of credit cards is one of many reasons why the amount of debt in America is increasing. According to the Federal Reserve Bank (2010), the amount of credit card debt at the end of 2009 was $866 billion.
Another way credit card companies hook consumers is that they offer rewards and incentives for those who use their credit card for everyday purchases. Have you ever wondered why credit card companies offer rewards and incentives to use their card? Aren’t they losing money? Credit card companies offer rewards and incentives to lure in new consumers and take old consumers from other companies. The marketing director of, Ben Woosley, warns that “If you carry a balance...