Dealing with Credit Cards without Failure

These days an average American family has from four to six credit cards! What does that mean? Well, it means, if we take into consideration that the limit of each card is, say, from $2,000 to $10,000, we may realize that their family budget comes to $12,000 - $60,000 (in case they have, for instance, six plastics)! Nice, isn't it? And yes, having so much money is tempting, and the desire to spend "a little bit more" is so great, and people sometimes cannot resist. They begin to waste money, absolutely unwisely, and finally this leads to ruin.
The mutual relations between a credit card issuer and a consumer have always been complicated, changing constantly. Some decades ago it was much easier: you hold either a gold card or a platinum card. At present a consumer is able to get plastics with the lowest rates, no annual, transaction or setup fees, etc. The appearance of new favorable terms and features attracts more and more customers who want to use this 'money'.
Moreover, credit cards are actively promoted. Pay attention, some of them are sent to people via mail and there is a mark "Approved" there... What is this? This means that you do not have to apply for a credit card and your credit history will not be examined. All you need to activate such an account is a phone call. Consumer protection in the USA struggles against these actions, because those who send such plastics do not care about the principles of a recipient. So he or she may be even a confirmed non-payer.
This aggressive distribution of credit cards arouses strong discontent, for instance, when such plastics are offered to students. If we start counting, how many young people decided to solve their serious financial problems by committing a suicide, you will be definitely terrified. Nevertheless, companies enlarge the amount of their customers at the expense of students, offering them CDs, bags, T-shirts, etc. if only they apply for a credit card.
During a long period of time people have been regarding credit cards as money as such. Using them, they get rid of some problems and inconveniences when they use cash. Somehow too many people even forget the way that 'usual money' looks. Why is that? The reason is not only convenience and 'user-friendliness'. It also about psychology! It turned out that plastics act as a peculiar 'analgesic', when a person effects a purchase.
So you are conscious of the fact that you have to give your money in exchange for services or goods, and your brain sends a signal which has a disturbing effect. So you ask yourself, whether you really need to buy this or can afford this. And when you take your money out of your wallet, it seems to be a distinctive stress. But the situation is absolutely different when you pay using a credit card. It seems to you: it is just a piece of shiny plastic, and I just need to sign a check. So it becomes much easier to give your money, since you 'do not give it'.

About the Author: Patrick Pelland writes his articles mainly on credit card applications. Read about credit cards and mortgage and know more!
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