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Changing Attitudes to Credit
Unlike previous generations many of today’s generation want everything right Now right this Minute even if they cannot afford it hence our crippling credit card debt.
Although there were credit cards available in the 60’s – 70’s only those who were rich or working in high paid jobs had one the rest of the population avoided them as buying something before we could afford it or paying interest on something that was not a major asset was not part of our culture.
If past generation wanted to purchase anything they either saved like mad until they could afford it or put the item on Lay-By and paid a little off every week up to the maximum allowed 3 months when they would finally take it home.
There were only two items that were purchased on any form of credit and that was the family home through a loan from the bank and a car if it was needed to travel to work.
Hire Purchase agreements for the purchase of vehicles were frightening and we know dam well if we did not make the payments the vehicle would be repossessed and our Credit Rating ruined.
Even today having a good credit rating is very important for the future when you wish to purchase your first home or other major items, borrow money for a holiday etc.
Unfortunately younger generations have a completely different attitude to Credit with many have credit cards valued at twice the amount they are able to pay off and maxed out to the limit.
I could not believe my ears when just recently I heard on TV a young lady some 20 years of age being interviewed who commented that “If I loose my job and cannot pay it I will just have to go bankrupt.”
What an attitude no wonder the world in is trouble with Credit Card Debt if she is an example of the average younger generations thinking.
Don’t this younger generation have any idea what going Bankrupt means. Going bankrupt can have a serious impact on their lives and your futures
- There will be strict limits on what they can earn
- If they own a house, car and other major assets it may be seized and sold to repay your lenders.
- They cannot borrow any further money
- Renting may be difficult
- Certain careers won’t be open to peruse
- For a set time you will have to disclose that you are bankrupt
- There are harsh international travel restrictions
- You cannot operate a business under a company license
These are just a few of the restriction that they will face .
Firstly I believe that all Banks and Lending Institutions that provide Credit Cards should be made more accountable and that every one applying for a Credit Card should be given a pamphlet outlining in no uncertain terms exactly what will happen if the Debt is not paid.
As part of this article I applied for 5 new Credit Cards Online limit $5,000 each. For the record I already have a Credit Card with a $15,000 limit . Only one company knocked me back say they did not think I could service the Debt. How strange considering I am only on a Pension.
Your thinking how can this possibly happen with a Pensioner well I will tell you the secret I have a AAA Credit Rating even 10 Years after I have retired.
If you must have a credit card Please do your research and use a Company that will help you find the best deals and interest rate to match your needs and ability to re-pay.