Free Investment Advice

The current economic crisis has proved conclusively that we are a nation in debt, that the banks are not engaged in lending, and that as individuals we owe more than ever before - due to credit card debt.

Why say no to credit cards?  Consider the consequences of credit card debt on banks, corporations, and individuals.

The banks that were given bailout money last year have stopped lending, and are holding on to the money in anticipation of the home foreclosures and non-payment of debt expected to occur this year.

Corporations and businesses are unable to obtain loans to add to their inventory.  Thus, losses are increasing and employees are either being laid off or let go.

There is no recourse either for homeowners who find they can no longer pay their mortgages and for those whose debt has put them in a deeper hole, because they cannot consolidate, apply for a loan, or find a clear path out of the darkened tunnel.

When you think back to our grandparents’ day, they never bought anything they couldn’t afford.  Credit card debt was unheard of back then.  Our grandparents paid for things with cash and if they didn’t have the cash, they saved.

Their lessons were not wasted on their children.  It was their children’s children that would become immersed in a world where credit was king and cash was an inconvenience. It’s just to easy to do, especially when you have credit card companies seeking out people to give credit to.

Today, there are more people in debt that at any time in our history.  With the economy in the tank, jobs lost on a daily basis, healthcare and food costs rising, businesses closing, and banks becoming insolvent, it is no wonder economists fear the worst.

Credit cards became an expedient form of a monetary exchange system.  And now we are all paying the price.  The government has already paid out over 700 billion dollars to bail out banks and businesses, and there is an additional trillion dollars that will be spent to revitalize the economy and promote new jobs.

Meanwhile, individuals and families are coping with the daunting task of paying down debt, whether it is through credit cards or mortgages.   Why say no to credit cards?  If you are one among millions who are currently trying to find a way to get rid of the debt you’ve incurred over the years, you are not alone.

Perhaps it’s time we return to the ways of our grandparents - when nothing could be purchased unless it was with cash and when loans and credit were taboo.  Perhaps it’s time we start saying no to credit cards.