Do You Really Need Credit Cards?
© 03.31.07 By Peter Gustavson

Credit cards have become a part of the American way of living to such a degree that most people cannot imagine life without them. Even highschool kids often have credit cards and it's the rare college student who finishes his education free of credit card debt - often a large sum at interest rates approaching 30%. Yet, are credit cards a necessity or have the American people simply been brain-washed into believing that carrying plastic is an essential part of the good life?

The truth is, people in the good ole' USA did just fine without easy credit for many years. It wasn't until 1951 that the first credit card was introduced by Franklin National Bank. Previous to that, there were some banks in the USA that printed paper credit slips which could be used like money in local stores, but there wasn't a nationally - or internationally - accepted form of credit payment like there is today.

Then in 1966 the Interbank Card Association was formed. In 1969 it became known as Master Charge "and the familiar logo of two interlocking circles of red and ochre was created." Finally in 1979 the name was changed once again to Master Card. It wasn't long before plastic was the new chic way to pay. The rest, as they say, is history.

Now-a-days we live in a society where the average household carries around $8000 in unsecured credit card debt. There are many who are burdened with far more. And, even though interest rates have been the lowest they've been in years recently, most of that debt is carried at rates well into the double digits.

Why do people get themselves into such a mess? Well, for many, it's simply a lack of self control. Far too many people are not willing to discipline themselves; they see it and they want it, whether they actually have the money for it or not. It used to be that the typical American middle class family had a long term view of life. They saved for larger purchases and went without rather than encumber themselves with high interest debt. They tried to leave an inheritance for their children. There was less focus on instant gratification and more concern for doing what was right for their own and their children's future. Those traditional ideals have largely fallen by the wayside. We are no longer an upwardly mobile middle class people but a populace with the attitude of the lower class: a short term view with no concern for future consequences.

I realize that there are people who fall into serious debt through no fault of their own. I've been there. I accumulated thousands of dollars in debt when I lost my job and was not able to find permanent work for several years. Scrimping and cutting corners combined with whatever odd jobs I could come up with didn't cover all the bills. Unfortunately I had several credit cards I had acquired before I hit tough times. Before long I was using them to put food on the table. Then I was using cards to pay minimum payments on other cards. By the time I found permeant work three plus years later, I was deeply in debt and without any hope of paying off the total balance. For me, the only way out was settlement. I'm still recovering from the devastation it cased in my finances.

The bottom line is that you can live without credit cards if you really want to. My advice to you is to cut the darn things up right now. Call and close out the accounts. Then, start putting every penny you can afford toward the card with the smallest balance. Stick to it. Once that card is payed off, take the same amount you were paying - every penny of it - and apply it, to the card with the next smallest balance. Be sure to add it to what ever amount you were paying on that second card in the first place. Keep doing this until all of the (closed), accounts are payed off, AND NEVER SIGN UP FOR A CREDIT CARD AGAIN! Your future will be the better for it.