Would we be better off if credit cards never existed?

Asked by: ramramgeorge
  • If our financial system could be modified to not be dependent on them for income... Why not.

    Apart from credit cards being invasive. There is a much larger problem surrounding the use of credit cards.

    You see many of our wonderful banks rely on the interest payed from credit cards as methods of generating income. Which is why people think they are good. They are also very convenient and and help increase the purchasing power of an economy.

    This all seems great until you realize how irresponsibly people use them. Countless amounts of debt in the world are created via credit card debt and it makes the financial system unsustainable. Some people would say a lack of education in credit cards and their proper use is the problem, but that only solves part of the problem as people would still continue to spend like no tomorrow and continue to not keep track of their money because they would think "meh I will pay it off in a month" but never do.

    Also who spends on credit cards and if they spent too much is EXTREMELY hard to track because many people often "shuffle debt" around on their credit cards and never pay it off. Whatever debt they have on one card is "paid off" with another. It is unlikely you could get a company like visa to invest in security measures that prevent this from happening because they make all their money (mostly) off of other people debt. Having companies impose a limit on how much people can spend would not exactly be a great idea, because it would save some people from going into debt but be a nuisance to others.

    Even with all this financial consultants, education, and countless ways to keep track of their money people have PROVEN that they are irresponsible with the "buy now pay later" system we have all gotten use too.

    I think the whole idea of a plastic card as currency is a good idea, but only debit cards seem to be the most sustainable option because whatever you have in your account is the limit you can spend. Thus, allowing people to spend as much as they can/deserve without going into debt because they stop once the money in your account runs out. It still gives a chance for banks to make some money AND makes our entire financial system much more sustainable. It also helps with the whole "shuffling debt" problem that is creating some serious troubles for us down the road.

  • Yes and No. But mostly No

    These days our credit cards are getting way to invasive. We now have the fly buy cards which are extreamly invasive these days. Don't forget about the machines that you get money out of. Everytime you go to get money, the bank takes a little bit for themselves. Although if you don't take money out of the bank and keep putting money in, the bank gives you a little more money. Back in the day you would be able to go to the bank and get whatever money amount you need without them taking anymore away. Times have changed.

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