Can we blame credit cards?

Oct 08, 2008 (The Wilson Daily Times - McClatchy-Tribune Information Services via COMTEX) -- AXP | Quote | Chart | News | PowerRating -- Since learning recently that our nation has gone down the economic dumper, we've had time for our financial experts to offer their theories on what went wrong.

Basically, there's been lots of fingerpointing and placing blame on everyone else but ourselves.

We've heard Democrats blame Republicans, and vice versa, the poor blame the rich, and vice versa, and so on, but in the long run it really doesn't matter who's at fault.

I'm no economist and don't pretend to know the root of our problems, but apparently neither does anyone else.

Yet, since others have opinions on the matter, the least I can do is offer mine.

I honestly believe we're in this fix because of an item found in our wallets and pocketbooks and made of plastic.

That's right, credit cards and our insatiable appetite to use them for charging anything and everything on the spot when we don't have the cash to pay for it.

Some might disagree, arguing that the credit concept is the backbone of our society and without it few of us would have homes, cars or college educations.

Maybe so, but that's not the same thing as credit cards.

I've done some research on various Web sites and learned the following:

--The average person in America carries eight credit cards, and very few of them have a zero balance.

--There is no federal limit on the interest rate a credit card company can charge.

--If you were to actually read the fine print when opening a credit card account you'd likely be scared off and never get one.

--The first credit card was issued in 1950 by Diners Club, and in 1959 American Express introduced the first card made of plastic.

One pro-credit card argument is that by using them you can get more stuff (golf clubs, riding lawn mowers, etc.), have an occasional fancy meal or go to Disney World.

But, at what price?

Credit cards are great if used properly, but few of us actually use them properly.

Believe it or not, the money actually has to be paid back.

They're too easy for anyone to obtain, and if you don't think so, check your mailbox over the next few days.

Furthermore, not only are they easy to use, they're just as easy to abuse.

The simple solution, while painful, might be to do what our grandparents did: If you can't afford an item, do without it until you can. Chances are you probably didn't need it in the first place.

I realize this is just a futile suggestion since it's probably already too late to remedy our situation.

barnes@wilsondaily.com

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