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10 Reasons Not To Use Credit Cards

By: Steve Johnson

6/9/2009 - 50 Comments

The rapid expansion of credit that allowed America get into trillions of dollars in consumer debt over the last few decades has been made available by the easy use of credit cards.

The economic collapse could have been prevented were it not for the expansion of credit and the increase in supply of money by the Federal Reserve’s low interest rates.

But, now that we are hear – in the middle of the worse economy collapse since the great depression – we need to reverse course. 

Wealth is produced by savings and production, which is why China is growing in influence and America is slipping.  For the same reason, America led the world since the industrial revolution. True hope for a better economic future is found in saving money.

The economy is in desperate need of a sharp increase in savings to recapitalize the banks to provide much needed loans to new businesses – which are the source of new jobs.

The government should been running a public campaign to increase the personal and national savings of our great nation – along with removing tax and policy burdens that are hindering new business growth

In a word, saving money is very patriotic and just may become as important in defending our nation from economic destruction as fighting with guns.

Much of the credit card industry investors are foreign banks and therefore increasing credit card debt is further selling our nation into financial bondage.

I have read many reasons that people like to use Credit Cards, but I believe they are doing much more damage then good, so here are 10 reasons not to use Credit Cards: 

  1. The expansion of credit is the source of the financial collapse, why expand it more?
  2. The average person spends 18% more with credit cards then with cash
  3. Credit cards increase your risk of identity theft
  4. Credit cards can be more work to manage then they are worth
  5. Credit card rewards are a trick to get you to spend more (and it works)
  6. Credit cards easy to get behind on your monthly payments
  7. Credit cards make it easy to make a quick bad decision
  8. Credit cards are harder to keep track off then a checkbook, because you have to either collect recites or wait for the monthly statement or sync with an online budgeting software to balance your checkbook – which I have found to be a big investment in time and difficult to customize.  The best option to manage your money on a weekly base’s is with a pencil and paper.
  9. Credit cards add another monthly bill to worry about
  10. Credit cards are a fast track to debt, which is financial slavery, not financial freedom

I hope this list convinces a few that using credit cards for consumer spending is never a good idea. Credit cards should only be used for business use, guided by profit and loss to increase the wealth of the business owners. 

No economy can perpetually over consume.  When consumers spend money on credit they are over consuming and periods of over consumption leads to periods of under consumption to balance how much a fixed group of consumers can consume before running out of money. 

A limited amount of poeple, working a limited amount of hours, share a limited amount of money that can be spent through our life. Therefore our money supply or the wealth that we have as a nation is limited.  A limited supply of wealth means that it is impossible to borrowing and spending our way out of debt.

We cannot over consumer our way out of a recession that is a result of over consumpion.  With another 345,000 jobs lost last month, the situation is desperate to convince the nation of this bacis princible of economics.

Wise up and throw away your credit cards.

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