Debt culture: Should credit cards have warning labels? essay sample

Finance management is a serious issue, which would better be taught at schools. The main result of financial ignorance approaching debts in leaps and bounds, which is the first reason why households crush. Credit cards have a tricky mechanism in them; to ignorant people, it seems to be harmless, but having a closer look they notice that credit is like a snowball – once you are in, it is incredibly difficult to find the way out.

Credit cards have a few characteristic advantages. It can be the only thing to use in emergencies such as a flood or fire. Unpredictable situations may involve every type of damage which shall be covered immediately. Besides, credit card companies frequently offer some benefits like discounts for buying from their partners or insurance for a massive purchase. However, not all cardholders spend responsively. In numerous cases, people use a credit card to spend money they do not have. Allowing themselves more than their budget can cover, people just cannot imagine how difficult it will be to repay the debt.

Practically, debit cards can fully substitute credit cards for those who is likely to spend more than they should. It is same easy to buy things in the physical and online stores with debit cards, and the cardholder remains aware of their budget. They are perfect for young adults who have just begun to earn their own money and are still learning to spend them wisely.

Acquiring a credit card, people shall have a clear understanding why they do it. It would be best for credit cards to go with a brochure explaining the risks person takes along with a credit. But it would be even better to ingrain the habit of responsible spending with family upbringing.

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