Piotr Jakubowski – Mind over Marketing

Materialism & Credit Cards
March 13, 2007, 6:58 am
Filed under: advice, credit cards, debt, finance, materialism, responsibility

Materialism & Credit Cards

After reading two different blog entries that shared a single theme, I took some time to think about the idea of materialism.

The United States is a very very materialistic culture. Ever since I arrived in this country I realized that this is a “go big or go home” mentality. Look at the size of the cars driving around. You could probably fit a family of 10 into an Expedition and still have room for the dog. And all you see is one person driving around in this monster of a car. Also, if you can’t afford it, there’s always car payments.

The biggest indicator of this American materialism: the negative savings rate. For the 2nd year in a row, the US Consumer savings rate has been negative. People have been spending more money than they earn. Which sounds like it shouldn’t be happening? I mean, can someone really eat 1.5 loaves of bread when they only have 1? Oh yes they can. You borrow the other half.

Credit cards are deadly. The lack of education in financial management has proven to be a downfall of consumer society. Credit card debt is ridiculously high, to the point that credit card debt elimination companies have been established. People are actually blaming and suing credit card companies for the ridiculous interest they’ve racked up on their own debt. People! Are you serious?

Moral of the story is: learn to keep track and manage your finances. Credit cards can be used and abused. Here’s a few things that I’ve learned;

1. Use credit cards responsibly to develop and mold your credit score/history which will help you acquire loans and mortgages in the future
2. NEVER spend more money than you can pay back within the next payment period. Interest rates rise exponentially, and pretty soon you will be over your head in payments.
3. Don’t spend more money than what you have in the checking/savings account.
4. Stick to one or two credit cards. It will limit the number of annual fees you pay and the number of payments you must keep track of.
5. In some cases, call the credit card company to set your limit at one level. This way, they will not increase it every few months in an attempt to entice you to spend more money.

Here are the articles:




1 Comment so far
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VERY smart 🙂 now, who taught you that??? hehehe

Comment by mama

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