The Credit Card: Private Troubles and Public Issues

Credit card is one of the greatest inventions of America. It is treasured, even worshiped. Yet this isn’t just any other invention, it has become an American icon, making to the list where McDonalds, Coca-Cola, Marlboro and others belong. But not only that! Wait, there’s more! Credit Cards are so powerful that it could even surpass what these other Icons can. It can even buy these icons once you get hold of a credit card.

Credit cards are so powerful. With swipe here, swipe there, in a snap! You have yourself your favorite brand of shoes. You can purchase anything that you want without running through the bank for withdrawal of your savings, or by even getting money from your wallet. They are convenient. Anytime you want, anywhere you are, or even anyhow, you could easily get a purchase. Through your card ID, you could buy anything without rushing for the mall before it closes. Through online shopping, you could buy just anything you want 24/7. With credit cards, you can save money as you could buy in sales with discounts, perks and privileges offered. Credit cards are safer to carry than cash, minimizing cash-based crimes. They are also convenient to pay as it gives us an option of paying bills in a long period or all at once.

Credit cards are also considered as a means of social status. If you have a credit card then it implies that you are in a higher social mobility. In a department store for example, the cash registry attendant would always ask if you will pay cash or charge. Some people even have five or even ten credit cards. Your name is printed or engraved in a credit car. It also serves as your ID, since some even have pictures and signatures on it. They are often used in verifications.

Credit cards generate a culture of spending much, spending much in the sense that even if your salary is much lower than what you spend. Spending much which results to a bad habit of indebtedness. Individuals who are actually the victims are paying for the charges that they have made even though they have purchased an amount that they are aware they can’t pay. In spite of the known consequences, people tend to use and still spend through credit cards.

The original mission of the banks was to encourage people to save money, but due to the emergence of banks they have gone otherwise. They offer low interest rates to entice individuals to use their credit cards and to let people spend more. It has been an invention of the banks to spend more and save less.

Though the problem of the use of credit cards were already manifesting, advertisements and competition of credit cards still exists in total energy. Youngsters are now being exposed to such a culture that would engulf them and advancing their possibility of being drawn into indebtedness.

The problem of the use of credit cards reminds me of how capitalists exploit the masses. Having higher profits come from both cutting the cost and selling more products. The credit card industry plays such a role that people are encouraged to spend more money far beyond the available cash they have on the goods and services the capitalists have. They exploit consumers. Indeed, modern capitalism has gone too far. Instead of extracting money from consumers alone, they used another channel to greater heights.

In the Philippines alone, banking and shopping had been altogether been part of a great syndicate wherein people are encouraged to buy goods from the capitalists department store while using their brand of credit card yet the profit goes to them also.