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From a psychological standpoint, human need for money is proportional to what each specific person is interested in buying and what they think is within range. Therefore in some people, credit card dependency can breed an overestimation of what they can afford. The result of this state is an increase in the demand for money to either repay the borrowed credit or suppliment credit purchases with additional funds.
Short Term: [PRO]
In the short term, credit cards allow customers to purchase products and services they would not normally be able to afford. This stimulates the economy at large.
Long Term: [CON]
Individually, each consumer pays interest on purchases not repaid by the end of the month. Comsumers who can not or do not repay this debt can become trapped in a financial quagmire which in the long term can have the opposite effect on the economy at large.
In the current market, credit card companies who fail to regulate the issuance of credit to unacceptable debtors mortgage our financial future and further drive the public demand for more money into unreachable standards.
What else can I help you with?
What are the differences between secured and prepaid credit cards?
Secured credit cards require a security deposit to establish a credit limit, while prepaid credit cards require you to load money onto the card before using it. Secured cards help build credit, while prepaid cards do not impact your credit score.
What are the three types of credit cards available in the market and how do they differ from each other?
The three types of credit cards are secured, unsecured, and prepaid. Secured credit cards require a security deposit, unsecured credit cards do not require a deposit but are based on creditworthiness, and prepaid credit cards are loaded with a specific amount of money. They differ in how they are obtained, how they are used, and how they impact credit scores.
Are credit cards considered to be money?
Although many people treat them as such, no, credit cards are not considered to be money.
how can i get free money to pay off my credit cards?
how can it get free money to pay off my credit cards
Do you pay on debt with credit cards?
no you go into a deeper debt with credit cards. creadit cards are not money. you BORROW the money and they want it back really quick.
If consumers begin using credit cards for all of their purchases you would expect to see inc demand for money dec demand for money dec in quantity demanded of money?
decrease in the demand for money
What are the differences between secured and prepaid credit cards?
Secured credit cards require a security deposit to establish a credit limit, while prepaid credit cards require you to load money onto the card before using it. Secured cards help build credit, while prepaid cards do not impact your credit score.
What are the three types of credit cards available in the market and how do they differ from each other?
The three types of credit cards are secured, unsecured, and prepaid. Secured credit cards require a security deposit, unsecured credit cards do not require a deposit but are based on creditworthiness, and prepaid credit cards are loaded with a specific amount of money. They differ in how they are obtained, how they are used, and how they impact credit scores.
Are credit cards considered to be money?
Although many people treat them as such, no, credit cards are not considered to be money.
how can i get free money to pay off my credit cards?
how can it get free money to pay off my credit cards
Do you pay on debt with credit cards?
no you go into a deeper debt with credit cards. creadit cards are not money. you BORROW the money and they want it back really quick.
Where can one compare rates on credit cards in the UK?
Credit cards are a necessity for many business people and there are a wide variety to choose from. To compare interest rates for business credit cards check out Money Supermarket, Money Saving Expert, Money or Money Facts.
What is meant by plastic money?
plastic money nothing but we use normally plastic card like credit cards, debit cards, etc.,.It is vernacular for credit cards.
What is the definition of plastic money?
Plastic money refers to credit cards, debit cards, or any other cards that are used to make payments electronically instead of using cash. These cards are made out of plastic material and can be used for various financial transactions.
Why were credit cards invented?
Credit cards were made because banks wanted to keep up with credit as in owed money better.
Why credit cards are money?
Credit cards are not money, they are used to purchase things under a temporary loan, which can be repaid at a later time for a small fee charged by the credit card issuer.
Are USAA credit cards applicable to everyone?
No, you have to apply for most types of credit cards. The only credit cards that everyone can for sure get are the prepaid kinds from the store, you have to pay for cards and then load the money onto them.
