Everyone loves a credit card yes? These are a great form of ready cash that can let you buy that elusive item without having to save up. You see a bargain and you know it won’t be there next week, no disposable income at hand, so making this transaction easily means to use the plastic. There are and always will be benefits to credit card use, but unless you are able to maintain control, these benefits can easily become a nightmare. The reason that there are now so many people against the credit cards is simply because the interest laced cash is beyond the means of certain people that hold the cards. How can a company provide a card for someone who can obviously not afford the rates if they reach their limits, and unfortunately, invariably reach their limit?
So who is irresponsible? The provider or the user? Both really, but the buck has to stop with the user. They applied, signed and began to use the card. They know their own situation better than anyone else, and without doubt, know that they cannot legitimately pay the monthly fees if the card gets out of control. And yes, it always does go out of control. The provider does perform certain checks to ascertain whether the user is applicable for the card. These checks normally rely on a reference check; but this hardly informs anyone as to what money is coming in and people have been known to use the odd white lie in obtaining any kind of credit.
This abuse of credit is called excessive credit card debt. It needs to be analysed from both the provider and user level to be able to rectified. Better checks are needed before cards are provided in the first place. But the truth is that the industry probably doesn’t want these checks in place because they do earn a great of money by providing cards for anyone and everyone. The individual should really take more care in their financial situation. It is their responsibility to make sure they are financially viable when entering into any commitment.
These issues have been long in the standing and it is difficult to see a light at the end of the tunnel. The industry does not want to deny anyone a card that passes present reference checks and the individual still remains defiant that they can get manage a credit card wisely.
It is likely that some sort of political; intervention would be needed but is any party brave enough to risk alienating a section of the voting public?