When we return home from work/school, often the first thing we check is the (snail) mail box. Often there is at least one envelope that has the words "You have been pre-approved for a credit card" on it. A high percentage of telephone calls we receive during supper-time are calls that involve signing up for a credit card. When we go shopping in a mall, there is always someone who walks toward you, asking you to sign up for a credit card.
Credit cards used to be a status symbol or something people use to show off (like Mr. Bean did in one sketch). Today, anyone (and I mean anyone) can own a credit card. No credit, no income, no problem. In some ways, this trend can be viewed as a positive, that people have more to spend. However, there is something wrong when people with little income can be approved for more than one credit card on their own (many of which don't know anything about hacking networks).
Of course, the credit cards don't give away plastic for free. For many of us, our first reaction after reviewing the monthly statement is a gasp, followed by "did I spent that much last month?" Many of us keep track of the time and place we use our credit cards, but we may still be shocked when we read the amount owing column of the statement. After all, when we made the payment, it seems so easy — with a simple signature, the bill is paid. I don't have to worry about it anymore (well, for the rest of the month anyway). Even if we know the credit limit of a card, there are times when we go over the limit. These are not problems if we use our cards frugally. (Of course, the card companies may want to have a little fun once in a while and adjust the credit limit arbitrarily. Thankfully (I think), there are laws preventing this kind of "mischief".) The worst part about paying a credit card bill happens when one misses the payment deadline. Usually the companies cut us a little slack if we miss just one payment. However, if we allow the balance to grow and continually fail to make payment, there is no better investment than this (for the company, not us. If there is an investment plan that guarantees this kind of return, the line-up of people waiting to enrol in this plan can stretch from New York to Los Angeles). The interest rates they charge are astronomical compared to the interest we receive from our bank (we would be lucky if the interest is enough to cover the service charges).
There are some credit card companies that mail their members cheques and call their members to convince them to sign up for programs that alledgedly would save us money (I have received these calls much more often than I desire). Whenever I receive cheques from my credit card company, I destroy them immediately. Please, help out the environment (and your bottom line) by not sending me those cheques. The worst part about the telemarketer calls is that they often push for a service that I have already signed up for or have opted out. I may have to start writing a template so that I can make a standard responce to these people. Since they often begin the conversation with the same line, I'll respond in kind.
We also have to worry about our personal information being stolen when we use credit cards. When the card is being swiped through the card reader, we have no way of knowing whether the data collected is used for printing the receipt alone or is the data stored for producing counterfeit cards. With the rise of e-commerce, we also have to worry about our personal information being stolen by hackers, criminals, or dishonest employees of card processing companies. An honest mistake by someone working at a company processing credit card transactions may be all it takes for you to become a victim of identity theft.
That is not to say that credit cards should be obliterated from the face of the earth. Credit cards are useful when making large purchases, and they are a good back-up when we are short on cash. They are also safer to use. Imagine going to a store to buy a television, most of us won't bring along $2500 of bills to the store (the wallet will be on the brink of exploding). Besides, by bringing along so much cash, we are inviting trouble. We may be able to deactivate a credit card if it's stolen; once cash is stolen, it's gone forever.
Credit cards probably will continue to be part of our lives, at least until we are granted license to print money (if you think that day is coming, please don't wake up, you will be very disappointed).