Wednesday
October 1, 2014

Homework Help: persuasive essay

Posted by mike on Friday, June 17, 2011 at 9:29pm.

need help checking grammar errors please and how good is it?

Credits cards have some positive value to them from being able to make big purchases, to making an everyday purchase. This reminds me of a quote said by John Mc Donald’s “Everything that has a positive side also has a negative everything in the universe must have this in order to complete a circle.” Most Americans should not use credit card. First, most Americans don’t educated themselves enough or understand different sides of credit cards. Secondly, if credit cards are taken lightly they can lead to overspending. Lastly, credit cards are one of many contributors to the financial crisis America is facing today.
First of all, there are side of credit cards some Americans seem not to understand or are uneducated enough to comprehend. A survey by graduate students in Princeton of 1003 individuals revealed that nearly 1/3 of the participants involved in the survey did not know there interest rate , fewer than half have ever order there credit score, and 60% did not use monthly budgets. According to a special done on frontline, “credit card executives and consumer advocates admitted that the last time they read their own contracts was years ago and the credit card agreement is hard to understand.” “There is certain disconnect in the U.S. between people and their finances” says Jim Tehan, the spokesman for Myvesta, the non-profit consumer education organization. They have done phone surveys in that last year that showed almost 50% of people did not know what their APR’s were, and 25% did not review their statement every month. Moreover understanding and reading a contract will determine the difference between a fixed APR rate and a variable APR rate. According to credit card policy’s a fixed APR with 15 days notice can be change at any time. “Even if you make your credit card payment on time, the credit card bank can raise your interest rate automatically if you are late on a payment somewhere for example, another credit card, phone, car or house payment and even simply because the bank feels you have taken too much debt.” This practice is called “the universal default” clause and is becoming a common clause in credit card agreements. “If there is one thing consumer advocates and the banking industry does agree on, the abundance of convenient credit cards gets a lot of people in trouble because they are financially uninformed” This is important because you as a consumer are financial responsible for yourself this means you can only blame yourself if you get into financial trouble. In their lack of understanding Americans have acquired credit card debt or revolving debt reaching $796.1 billion
Additionally, if credit cards are taken lightly they encourage overspending. According to a Dunn & Bradstreet report people spend 12-18% more when using credit cards than when using cash . Greg Davies at Britain’s Warwick University explains, “That credit cards boost spending because of the psychophysics of how our brain works. He found that credit card reduces the pain of payment because of the following; Paying for the product or service is put off when you use plastic. Therefore we don't do the same mental accounting as we do when we pay with cash; When we buy several things on a credit card at one time and pay in a single transaction, there is no clear signal that we may have overspent on any one of the items; Paying with cash is a visual clue that money is being spent. And while checks don't have the same effect, writing down the amount physically still imprints on your brain that you are letting go of some cash.” The author goes on to boldly state, “ if you don’t believe the research try it yourself” he challenges anyone for a month just to pay with cash then a month paying with credit cards and evaluate the difference. When people use credit cards keeping track of the spending amount is not the same. For example, Mc Donald’s found that the average transition rose from $4.50 to $7.00 when customers used a credit card . In addition, having a credit card is like having a double edge sword. On one hand it can be an invaluable tool to handle life’s situation like medical bills, loss of job, and any other emergency that arises. In contrast it can be the reason for financial difficulties according to a Frontline interview of financial consultants they said “approximately 35 million Americans pay only the required minimum “as low as 2%” off their balances each month. Sticking to that rate, it could take years to clear their debts and they end up paying far more than the item they bought or the services they bought”
Finally, credit cards are one of the many contributors to the financial crisis America is facing today. According to an article titled America has a structural problem it states, “America has a Credit demand problem, not a Credit supply problem. It isn’t that the banks won’t lend, but rather that few can any longer afford or qualify (on any reasonably and historically sound basis) to borrow.” According to an article in Cnn money, “ experts thought people would default on their credit card before other loans because there is no collateral, this in terms is not such great sign for housing market and boarder economy.” Certain individuals take on credit like a joke giving the burden to the rest of us. Okay let’s say you don’t pay your credit debt and just declare bankruptcy which 1.6 million consumers did last year , the discharge debt from bankruptcy must be paid for by tax payers Dr. Robert Manning, a professor at the Rochester Institute of Technology and author of Credit Card Nation: The Consequences of America’s Addiction to credit , says “ credit is no longer viewed as an earned privilege, where you had to have a job to demonstrate that you were worth of a loan .This generation has been socialized to feel that it's an entitlement to have these kinds of lifestyles. They don't have to earn it. They don't have to be disciplined to save. As a result, credit cards have become a kind of 'yuppie food stamps.’” Some financial experts and individual will argue,” That credit card provide financial relief for some individuals and America has always been in financial debt” Well to those Nay Sayers I say this, America has always been in debt but where are credit cards company getting their deficit in funds if not by individuals paying minimum amount, tax payers and more prime rate loans. I have given expert testimony which states that there are enough credit cards to go around just not enough credit. Moreover, financial experts like Edward Yingling would say,” In contrast to the purchase of a car or real estate, where the item purchased serves as collateral, in the realm of credit card lending there are no assets backing the loan.” It’s in plain English certain individuals who don’t pay their credit cards create a deficit and that deficit has to be paid by someone.
In conclusion, most Americans should not have credit cards. In short, some Americans have not taken upon themselves to educate themselves on credit cards and all the responsibility that comes with credit cards. These Americans either turn their heads from the problem or do not understand how credit cards works. Furthermore, credit card encourage some type of overspending whether you pay more for the item, pay interest rate, or worse are late and have to pay penalty fees. As a consumer you will eventually end up paying more when compared to cash. Additionally, credit cards are one of the many contributors to the financial crisis America is facing today. America as a whole has to take into consideration what happens when those irresponsible and overspending individuals leave a deficit for us to pay. Hard working, credit card paying, and taxpaying individual are left with this burden. Americas and Americans have already taken on to much financial debt there has to be a breaking point.

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