Why Are Americans Spending Money To Spend Money?
Spending more than you earn is the norm with Americans with over 40% Americans leading a debt-centered lifestyle. Americans have learned the art of spending money to spend money and the easy availability of credit is making matters worse for Americans who are continually leading an indebted lifestyle. Can the average American be blamed for spending money to spend money?
For quite some time now the blame for the habit of spending money to spend money is being pushed from one service provider to the other with credit card issuers taking a major portion of the blame. The blame for the habit of Americans of spending money to spend money does not rest with a single party but should be spread across the board.
Several service providers must come forward to accept the drastic situation they have put Americans in because the problem would never have aggravated if it wasn’t for the greed of these service providers. Let us look at some of the sources which have provided Americans the education of spending money to spend money.
Credit card issuers
Numerous credit card issuers should definitely take the blame for making available easy credit at high rates of interest. Globally credit card issuers do not have the best interests of the cardholder and are only interested in pushing the average individual into debt. Applicants for credit cards are enticed by credit card issuers by making offers of different types.
Applicants for multiple cards are advised their applications have been rejected because they have made several applications at the same time. However, the applicants are free to obtain store credit cards where the staff of the store or the mall issue the card which can be used instantly. People are only required to continue shopping at the store while the card issuer gets an opportunity to collect an even higher rate of interest. The stores make their own efforts to encourage the newly enticed cardholder to make more purchases under the guise of offers and lead Americans into the trap of spending money to spend the money.
The habit of spending money to spend money should be discouraged
Americans have already learned that the habit of spending money to spend money. The objective of discouraging this habit rests on the shoulders of the government because it is the only authority in the country which has the power to take certain steps.
Banks have already made a beginning by curtailing the availability of credit to average Americans. Obtaining finance from a bank is becoming increasingly difficult because of the stringent checks which they apply. This has however not stopped some lending institutions and financiers to take advantage of the situation and make easy credit available for Americans to continue their habit of spending money to spend money.
Online lenders are just as responsible as credit card issuers
Lending institutions have existed from a long time. However, in recent times they have made a foray into the online world and have made it easier for people to obtain the credit they need. It is now easier to obtain the finances required for any type of spending because online lenders do not question the reason why people are looking to borrow money.
They are only interested in charging the high-interest rates which in some cases is higher than it is charged by credit card issuers. People have the option of making an application for the money at any time during the day or night with the assurance that the money requested would be in their accounts within a few hours.
Online lenders are not interested in checking the credit history of the borrower and only need proof of residence, age, and the Social Security number. They are prepared to advance the money requested at short notice and also allow their clients to roll over loans if they are unable to make payments on the due date. As long as people are prepared to pay higher interest rates and satisfy the greed of lenders they are able to find all the finances they need to pursue their habit of spending money to spend money.
It is for Americans to understand they are not being offered any services free of charge. Credit card issuers are charging in the region of 22 to 30% on unpaid balances and private lending institutions are exceeding these figures. It clearly means that unless Americans want to gain control over their expenditure they will continue their habit of spending money to spend money.
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