Do Charge Card Accounts Do More Harm Or Good For Consumers

We all know, credit cards are blamed for a lot of bad. But, if charge card accounts were so bad and had no positive reason to be, why would they be on the market? As the owner of a credit card blog, an Americans advocate and personal debt consultant, I am often asked, "Are charge cards good or bad?". And the answer is well, neither. In short, charge card accounts are simply financial tools and when used in that way, they provide great benefit to people. However, when people use credit cards in ways for which they where not intended, charge card accounts can do some real damage. Let me explain... Years ago, a few lenders thought, "Wouldn't it be great if people could alleviate the threat of having large amounts of cash on them to make large purchased? If in some way, people could simply place the purchase on a lending account that they would simply pay back?". This question lead to the birth of credit cards. Of course this would be great. These special lending accounts would be an instant hit with Americans for sure. As with any product or service, there are costs involved in facilitating the needs of people. With that said, lenders couldn't simply offer these accounts, they needed to attach APRs and other fees to them to ensure that they will make cash by providing this service. Another factor that seems to be the same with any product or service is that there will be a few problems at first. With credit cards, lenders sent them to everyone and I mean everyone. All Americans no matter what age sometimes even new born babies in several areas where sent charge card accounts without any credit factors because these systems where not yet in place. Believe it or not, family cats and dogs would actually receive charge card accounts in the mail addressed and created just for them. That's right, not consumers, but cats would receive a credit card account with their names stamped right on it. As people can imagine I'm sure, credit cards instantly began being used by most Americans that got them. Parents would use charge card accounts given to their children and pets and debt became almost instant. Now that lenders have systems to track the ability of consumers to pay their loans, we have other problems. Because of lack of knowledge, knowledge about credit cards that isn't quite as readily available as it should be, many Americans use charge card accounts improperly. Instead of using them for purchases that they are sure they can pay off in months, many consumers use charge card accounts for purchases that could land them in debt for decades! Believe it or not, some people become so addicted to spending on their charge card accounts that they spend themselves to bankruptcy! So, the bottom line, all of this was to tell consumers that well, credit card accounts are great. I make a perfectly fine 6 figure salary and still I use credit cards. Why, well they help me to manage and track my spending while alleviating the risk of being robbed for all the cash on me. If you spend my cash, there is nothing I can do. However, if you steal my charge card and make charges, I can get my cash back and have the police track you down! But, keep in mind, consumers should only use charge cards if they feel as though they are financially responsible enough to handle the responsibilities that come along with them. I you think you would spend more than you should if you could, DON'T GET A CREDIT CARD! The information found in this article was researched on JEMCreditCards.com: Best Skymiles Credit Card | Skymiles Credit Card Offers

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