In recent years, the simplicity and compactness of credit cards is making carrying cash obsolete. Cards are easier than counting bills and coins and take up far less space than gratuitous amounts of wrinkled, wadded bills. But don’t be fooled by these immediate, trivial benefits, because these short-term benefits, in turn, carry long-term consequences that the attractive look and accessibility of credit cards fail to tell you.
With interest rates averaging at 16.92 percent, and an average debt of well over $50,000 per household, (the majority of which being credit card debt) you could be paying for that candy bar you bought on impulse, that tank of gas, that occasional magazine, for the rest of your life. Along with the staggering $15 trillion national debt, and not to mention the dismal state of the economy, the future doesn’t look too bright for new credit card owners.
And don’t be fooled by the waves and waves of, “0% interest for up to two years when you sign up for our card today!” ads that accompany the momentous 18th birthday. Though they sound attractive, they carry untold baggage shrouded behind a curtain of subliminal messaging and attractive packaging that won’t be revealed until after you come to the realization that your credit score has long since gone down the tubes. Don’t fall prey to the idea that a credit card is “free money,” because when all is said and done, and the purchase has been made under the assumption that there won’t be any consequences for using the card “just one time,” there comes the bill. And after interest is calculated and added to the initial purchase price, you come the realization that that, “free money,” wasn’t as free as you originally thought.
Though credit cards are quick and easy to use, for the time being, using cash does seem like the more logical decision, despite the hassle. So before you become just another number in the national debt per household statistic, you have to ask yourself, am I really able to handle the long-term effects that accompany a short-term impulse? For teenagers, the answer is no. So don’t let yourself become just another number in a statistic, we have too many of those already.