The Instigator
solo2070
Pro (for)
Losing
7 Points
The Contender
askbob
Con (against)
Winning
21 Points

Credit cards are among one of the worst ways to make purchases. There are more effective means.

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Post Voting Period
The voting period for this debate has ended.
after 4 votes the winner is...
askbob
Voting Style: Open Point System: 7 Point
Started: 10/29/2008 Category: Society
Updated: 8 years ago Status: Post Voting Period
Viewed: 6,916 times Debate No: 5840
Debate Rounds (3)
Comments (20)
Votes (4)

 

solo2070

Pro

Credit cards do more harm than good to the consumer as a whole. The credit card industry has caused more people to go into debt than any other industry. They have been the source of more heartache, grief, and deceit than any other industry save perhaps the collection companies. However, credit card companies have their own collections departments so they still fall into that category.

It is a poor way to operate ones personal financial life by using credit cards to make purchases. There are more effective and smarter methods that can be utilized by the consumer.

1. use a debit card. This eliminates the temptation to go into debt for purchases and spend money they don't have.

2. use cash. This brings emotion into spending and generally causes the consumer to make wiser spending choices.

by using the before mentioned methods of spending this would reduce consumer debt, and alter peoples spending habits thus allowing people to have more money for themselves and therefore save more money than if one utilized credit cards.

Credit card companies have led us to believe many myths about credit cards that draw people in. Myths such as gaining points, flyer miles, and cash back. These are not perks that can only be attained by the use of credit cards. One does not need to use a credit card to gain these "rewards" when they could gain them on their own with much less risk to themselves.
askbob

Con

I would like to thank my opponent for giving me the opportunity to be involved in such an excellent debate.

While the American public has been portrayed countless times by the media to be deeply in debt, however, a relatively small population with huge credit card balances can skew the average to make it look like the typical American is carrying a much bigger debt load than he or she actually is.

In fact, 55% of Americans owed absolutely nothing on their credit cards.

Coincidentally only 6% of the population owes more than 8,000 dollars in credit debt. For this reason alone the Credit Card industry does not hurt most Americans. Only 21% of Americans owe more than 2,000 dollars in credit card debt.

"The Fed statistics pretty much gibe with what Fair Isaac, the creator of the FICO credit score, discovered when it reviewed millions of credit reports.

There are a few differences between the universe the Fed examined and the one looked at by Fair Isaac. For one thing, credit reports are individual -- there's no such thing as a household or even a joint credit report. Also, you have to have and use credit to have a credit report. Finally, credit reports don't typically distinguish between balances you pay off and those you carry each month.

But again, Fair Isaacs statistics show a world in which most people are light to moderate users of credit:

About 48% of credit card holders owed less than $1,000"

This being simply put, the majority of the American consumers owe little to no credit card debt.
http://moneycentral.msn.com...

Furthermore, my opponent has remarked that the credit card industry has put many more people into debt than any other industry.

This fact is also completely untrue. The credit card debt for Americans is $2.6 trillion dollars. However when we observe that in 1999 the debt amassing in the housing industry was over 6 trillion dollars (6.3)
http://allcountries.org...

Therefore I refute my opponent's claims that the credit card industry is responsible for the majority of consumer debt.

"Can you stop a debt collector from contacting you?
You can stop a debt collector from contacting you by writing a letter to the collector telling them to stop. Once the collector receives your letter, they may not contact you again except to say there will be no further contact or to notify you that the debt collector or the creditor intends to take some specific action. Please note, however, that sending such a letter to a collector does not make the debt go away if you actually owe it. You could still be sued by the debt collector or your original creditor."
http://www.ftc.gov...

As I do not have further space to show the benefits of credit cards (will post in R3) I would like to thank my opponent for an excellent debate and I look forward to his rebuttal.
Debate Round No. 1
solo2070

Pro

solo2070 forfeited this round.
askbob

Con

Ahh, it is unfortunate that my opponent has declined to post an argument in the previous round. However, (as promised) I will proceed with listing and further explaining the benefits of credit cards.

First of I will list them and then explain what they mean.

1. Floating
2. Theft Protection
3. Credit History
4. Card Benefits
5. Tracking expenses
6. Fraudulent Purchases

Now I will provide a detailed explanation of what each is and why it is beneficial.

1. Floating, you're probably imagining something floating in the air; however this isn't what this term means. Have you ever heard "0.0% APY for 12 months"? This means that if I purchase an item, I don���‚��„�t have any interest on the purchase for a whole year. Disciplined people with good credit scores can get huge limits on their credit cards. They then can get "cash back" with their purchase to the point of their limits. They then can put this "cash back" into a money market or C.D. for a year and receive up to 4% in interest. Through this way credit cards are valuable tool to the consumer.
Example: Bob has 3 credit cards each with a limit of 50,000 dollars. Bob goes to make a purchase and receives 100,000 cash back from two of his credit cards. Fortunately both credit cards provide 0.0% APY for 12 months. Bob immediately sticks this money in a savings account and pays back the 100,000 he borrowed over a twelve month period. Meanwhile that 4% on his hundred thousand is earning him say $3,000 in interest for the year. Therefore Bob can make an extra 3,000 dollars a year by doing essentially nothing.
2. Credit cards offer theft protection. If I have 100 dollars in my pocket and am robbed or the 100 dollars gets lost then I am out 100 dollars. However if I have my credit card in my pocket and it gets robbed/lost I lose nothing because I can simply call my credit card company and cancel the card.
3. Credit history is an extremely useful tool that saves the majority of Americans loads of money. Americans who pay there credit card payments back on time receive a sort of "A+" with the credit companies. This allows banks to shrug off some of the fear that you won't be able to pay them back on time. Since they have less fear that you won't pay them back, you get a lower interest rate which saves you tons of money. This also helps banks determine which consumers won't have the ability to pay them back saving the consumer much headache of losing their homes. Furthermore the credit history is reset every 7 years. So if someone has a terrible history, it allows them to start over so to speak.
4. Frequent flier miles, Cash back, and discounts when buying certain items is obviously a major plus. When the fine print is read, consumers can save a lot by taking advantage of these deals.

I would like to thank voters for reading this round and I will post points 5 and 6 in the third round. I sincerely hope my opponent will find time to post in the final round.
Debate Round No. 2
solo2070

Pro

solo2070 forfeited this round.
askbob

Con

Again it is unfortunate that my opponent has not posted another argument. Since the resolution was his and I have disproved it, I encourage all voters to vote Con.

As promised I will finish my list of explanations.

5. Many Credit Card Companies allow the credit card user to view their bills online which can easily be transferred to a computerized budgeting system, which save the consumer much time when doing bill paying and budgeting.

6. The Federal Govt. allows consumers to dispute fraudulent purchases on their credit card. So if someone steals your debit card and uses it, you are out of luck. However if this is done via credit card you can dispute the charges and not be charged for the fraudulent purchases. Additionally if a credit card company is charging you falsely for a bill that you didn't use on your credit card you can dispute the claim and usually win.

Since my opponent has forfeited both rounds and has not resolved his resolution I encourage all voters to vote Con.

Please provide a reason for your vote. I do not count votes without reasons for each point attached.
Debate Round No. 3
20 comments have been posted on this debate. Showing 1 through 10 records.
Posted by Logical-Master 8 years ago
Logical-Master
LOL! It's been 3 months and the fool is still at it! GET A LIFE! :P
Posted by antisemantic 8 years ago
antisemantic
Hey, if I break another one of YOUR TOS rules do I get another thirty days or does nothing I do or say just somehow not exist until December 6, 12:06 AM? Could I possibly get banned for say 20 years? Or do I have until December 6, 12:06 AM to get banned again? Just wondering.
Posted by antisemantic 8 years ago
antisemantic
Hmmm, I can still post too!!!!!!!!!!!!! I think your system is busted scissors/britt.askbob.
Posted by askbob 8 years ago
askbob
Thanks for your vote and explanation of your votes.

The running total stands at this.

Tally:
Con: 10 points voted by users: Antisemantic (3) L.M. (7)
Pro: 1 point voted by user: Antisemantic (1)

P.S. I couldn't include all of my points due to the character limit. Next time should I exclude the points that I can't fit?
Posted by Logical-Master 8 years ago
Logical-Master
As a cleaner (one who is interested in reviewing debates), I will gladly post my review for this one.

CONDUCT: My rule is simple: Those who forfeit even a single round usually lose in the conduct department. PRO forfeited every round after his first round. Ergo, CON wins on Conduct.

Spelling and Grammar: Again, this coincides with my forfeit policy. If you don't manage good spelling and grammar for all of your rounds, you lose in this department. PRO wasn't there to manage good spelling/grammar in his later rounds as he didn't get the opportunity due not being present, therefore loses in this department.

Convincing arguments: CON's arguments were heavily evidence base, thus the means of refuting them would be to provide counter evidence or point a problem with CON's evidence. PRO wasn't present to do this, thus under my tabula rasa paradigm, I have no choice but to vote CON in this department.

Reliable sources: CON provided many sources to affirm his claims. PRO provided zilcho. Therefore, CON wins in this department.

Points to note:

1) Don't present new arguments in the third round, CON. This is a round where your opponent has no opportunity to respond, thus, as a judge, I will not take anything new into consideration.
2) Try to get the argument you're affirming into your first round so that the later rounds are only used for rebuttals.
Posted by antisemantic 8 years ago
antisemantic
I read it. I do not understand fully yet. SO in reality I should not be able to be posting this right now. But that is hard for me to get. So if askbob chokes on his own vomit and britt/scissors are not around to hear him, did he really choke?
Posted by askbob 8 years ago
askbob
Additionally please review the TOS before commenting/voting.
Posted by askbob 8 years ago
askbob
The TOS has recently been revised, please click the link below to view any updates:

http://www.debate.org...
Posted by antisemantic 8 years ago
antisemantic
Looks like I can vote too.

I do not think your banning system is working to well.

Bladder just exploded.

And I just passed out.
Posted by antisemantic 8 years ago
antisemantic
Well, I can still comment. But I really have to pee. And I started turning blue about twenty seconds ago. How does this work exactly?

You are a very strange young man, anyone ever told you that before?
4 votes have been placed for this debate. Showing 1 through 4 records.
Vote Placed by DiablosChaosBroker 8 years ago
DiablosChaosBroker
solo2070askbobTied
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Vote Placed by SolaGratia 8 years ago
SolaGratia
solo2070askbobTied
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Vote Placed by Logical-Master 8 years ago
Logical-Master
solo2070askbobTied
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Vote Placed by JBlake 8 years ago
JBlake
solo2070askbobTied
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Total points awarded:07