If You have Two Pennies rub them together, If you have two credit cards run for your life
I am on vacation and we happen to have British television in France.
Last night, three ads in a row showed consumers getting consolidation loans. I got mad. People just do not seem to understand that a consolidation loan is usually a secured debt on your property whereas a credit card debt is not secured... this blog is not going to go into detail about this but this article showcases what happens when you do not have cash left in your house (no more credit lines off your investments) and you have reached the limits on your credit cards and you have spent your paycheck
Americans just do not have any money left. This is not the fault of high paying jobs leaving the United States. This is the fault of each and every consumer who feels it is necessary to purchase a new car every three years and the newest gadget on the shelves every six months. It is not just the big purchases that causes problems. It is the mentality that I can buy it now and worry about it later.
Americans have an addiction to shopping and a need for immediate gratification. I see the need for immediate gratification echoed in American businesses here in Europe. If there is no result in six months, they declare it a failure and want to change strategies. Unfortunately, Europeans are weary of change and six months is not enough time to get your foot in the door.
So it looks like Americans and American companies need to stop looking for immediate gratification and American consumers need to learn that shopping is not a way of life.
Not only are Americans going to be losing their houses in droves because of the second mortgage fiasco but they have no concept of how to live life on a realistic budget.
How did we end up like this? Who is going to save Americans from themselves.
Will First Data come to the rescue? It seems that credit card companies will have to teach consumers how to be responsible just like Alcohol and Cigarette companies have to teach users not to drink or smoke.
Last night, three ads in a row showed consumers getting consolidation loans. I got mad. People just do not seem to understand that a consolidation loan is usually a secured debt on your property whereas a credit card debt is not secured... this blog is not going to go into detail about this but this article showcases what happens when you do not have cash left in your house (no more credit lines off your investments) and you have reached the limits on your credit cards and you have spent your paycheck
Americans just do not have any money left. This is not the fault of high paying jobs leaving the United States. This is the fault of each and every consumer who feels it is necessary to purchase a new car every three years and the newest gadget on the shelves every six months. It is not just the big purchases that causes problems. It is the mentality that I can buy it now and worry about it later.
Americans have an addiction to shopping and a need for immediate gratification. I see the need for immediate gratification echoed in American businesses here in Europe. If there is no result in six months, they declare it a failure and want to change strategies. Unfortunately, Europeans are weary of change and six months is not enough time to get your foot in the door.
So it looks like Americans and American companies need to stop looking for immediate gratification and American consumers need to learn that shopping is not a way of life.
Not only are Americans going to be losing their houses in droves because of the second mortgage fiasco but they have no concept of how to live life on a realistic budget.
How did we end up like this? Who is going to save Americans from themselves.
Will First Data come to the rescue? It seems that credit card companies will have to teach consumers how to be responsible just like Alcohol and Cigarette companies have to teach users not to drink or smoke.
Comments
I for one have never bought something because it's a "must have" item, and my family hasn't bought a new car in 20 years. (We buy those 3 year old cars that have lost a little value, but still work great.)
Most of the other people that I know are careful with their money as well. There are only a few who are overly impressed with expensive things.
While I agree with you that many Americans need to learn how to manage their money better, greed is not a characteristic of all Americans.
Plus, the credit card companies work very hard to convince Americans to go into debt. As a college student (paying many, many thousands a year in tuition), I received a new credit card offer at least once a week.
All of them were low-limit cards urging students to put their $500+ of books (per semester) on a credit card, or to charge that spring break trip. One company, Chase, is notorious for encouraging students to open up new low-limit credit cards after the existing card has been maxed out.
For students especially, it's very easy to go into debt. And the companies do everything they can to push students further and further into the red.
Yes, some Americans do need to learn to manage their money better and to stay away from credit cards--but not all of us. And I don't think it's too much to ask for if credit card companies were required to be upfront about the consequences of using their cards.