The Finance Owl

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Is it Time to Destroy Credit Cards?

Posted by theaccountant October - 3 - 2009 - Saturday

Credit CardsCredit cards have become so ingrained in many of our lives that it almost seems impossible to imagine life without them. I cannot help thinking though that credit cards have been partly to blame for some of us starting to lose full appreciation of the value of money. Whenever I pay for things with cash, rather than with my credit card, it always makes me think more about whether or not I really need what I am abnout to buy.

It seems like almost nobody has escaped the credit card explosion, with this form of credit being found across the world from the Australian Commonwealth Bank credit card to the global Bank of America credit card.  Now is however a time for reflection, as we are stuck in the recession which has been caused by excessive credit. One view is that part of the credit bubble was caused by the excessive use of credit cards by banks hungry for market share. Although many banks point to the great offers and zero interest credit card transfers available, one must remember that there is no free lunch and that these are only ever offered since this entices new customers into the bank’s credit hold.

In the midst of the global credit recession, is now the time to destroy all of our credit cards?

The uninitiated can find out more about credit cards here: What Are Credit Cards?

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19 Responses to “Is it Time to Destroy Credit Cards?”

  1. Ruthanne Claassen says:

    An motivating and absorbing piece of writing thanks. Getting out of debt is a tough thing to do and I ought to know. I have been in debt situation for nearly four years and have just now started to claw my method out of it by means of a credit counselling service.