If you are financial sound individual credit helps being approved for big purchases like houses, cars and boats. Perhaps you have the liquid money, but you make more with investments compared to the interest paid on your offenses. What is the deal for those on the other side of the fence?
There’s only a small percentage of our population stated above, the remainder are the working poor struggling to make ends meet. Credit is like a catch 22 for all those folks because without it they are doomed, but it’s a temporary fix. At the end of the day these people are becoming financially raped by their underwhelming salary, extremely high inflation, and unreasonable taxation. To survive they need to use their credit cards and lines to buy basics like food. After awhile the interest and minimal payments become too much for them to handle. I imagine the interest’s rates on credit cards are so high to subsidize when clients can not pay anymore. Meanwhile the retailers are paid upfront the entire sum, the financial institutes have made their money through the interest. Unfortunately, the working poor are collateral damage going bankrupt, taking one for the group !
I believe the government is placing a band-aid on anther already terrific depression. They are using the working poor to support themselves, and the small percentage of these wealthy already. That’s the reason they are allowing financial institutes to supply those working poor with credit. It retains the rich getting richer, and the poor becoming even poorer. The real situation here is people have lost hope, never believing they’re going to save enough money for things they want. They work hard want a better life, and if credit is the only way to attain so be it. The price of things is no longer the significant factor, it’s about monthly credit payments. These individuals also know that should they do end-up bankrupt the government can’t take away certain items bought on credit.
My concept of credit isn’t to live on but build with. I can guarantee if the working poor made more they would not be so motivated to purchase a home. Credit is good for those who have money, but in the long run it really hurts those trying to get by. Maybe it is time for elected officials to produce an economic plan that works for all. Their greed is impacting the well-being of the majority of their citizens.
I say let us make money king again!