The World Is Obsessed With Credit

Running head: CREDIT CARDS VS. DEBT-FREE LIVING 1

Who is Better Off: A Person Using Credit Cards or a Person Refraining from Any Loans?

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CREDIT CARDS VS. DEBT-FREE LIVING 2

Who is Better Off: A Person Using Credit Cards or a Person Refraining from Any Loans?

The world is obsessed with credit and America is no exception. In many countries, more

so the developed world, having no credit score rating is unusual. In fact, the law stops short of

illegalizing debit card purchases in the U.S (Ramsey, 2013). Debit card purchases often elicit

curious looks from sales assistants. The reason this happens is simple. The financial industry has

been meticulous at convincing society that the fastest way to get ahead in life is through debt.

What it fails to disclose is that it makes huge profits off this debt. Gradually, though, society is

beginning to divide into ardent believers in credit cards and a few who can see past the financial

industry’s narrative on credit cards and have taken to refraining from debt (Ramsey, 2013). This

emergent trend gives rise a fundamental question about the prudence of either option.

This write-up adds its voice to the discourse concerning whether to use of credit cards or

not. More than enough times, businesses have faced injunctions due to unscrupulous business

practices. The practices in question sometimes include the issuance of misleading information to

the public via advertisements. Financial institutions are equally guilty of this behavior. The 2008

global financial crisis, for example, was an outgrowth of this behavior (Ramsey, 2013). Since the

legal repercussions of unethical business conduct are often dire, financial institutions find a safe

way of misleading the public to fall into their snares. Credit cards are a classic example of this

change of tact. Currently, underage American children are targets of credit card advertisements

(Bae & Ott, 2008). The sad part is that the companies consciously keep information about the

repayment of credit card debt hazy. In effect, users sink into perpetual debt that often leads to

financial ruin (Bae & Ott, 2008).

To get an impression of how deep the lie about credit cards is, one simply needs to look

at how the American society functions. The financial industry has elevated credit cards to a point

CREDIT CARDS VS. DEBT-FREE LIVING 3

where not having one is abnormal (Ramsey, 2013). At purchasing points where these cards

facilitate purchases, a debit card is almost unwelcome. This trend is interesting considering that

the use of a debit card to make purchases should signify financial stability. The reason debit

cards are not popular is that financial industry wants to maintain this status quo to ensure

continued profiteering from credit card debt (Ramsey, 2013). In fact, the average American does

not even know that they can make purchases using their debit cards. The execution of this

misinformation has been meticulous and its impact on society far-reaching.

The truth about credit cards is coming out gradually, but steadily. A section of society

woke up to the reality of what has been going on and is drawing others away from the snares of

financial institutions. Debt-free living is the best life one can ever achieve. Besides offering

financial peace, it teaches people discipline (Bae & Ott, 2008). They learn how to save and wait

patiently until they are able to afford the things they desire. Following this path also ensures that

people are able to distinguish between needs and wants (Ramsey, 2013). With this knowledge,

they can set their priorities correctly. The net effect of debt-free living is creation of permanent

wealth because the creator is able to grow and protect it (Ramsey, 2013). Many people in society

are still oblivious to this secret, but the few who know it would vouch for it without second

thoughts.

The question of whether to use credit cards or not, often boils down to personal choice.

Unfortunately, it is a choice many people make without knowledge of the truth behind the

concept of credit cards. More often than not, they lead people to financial ruin. Essentially, credit

cards are an invention of the financial industry whose purpose is to trap as many people as

possible in debt, and make money off their woes. The epitome of financial prudence lies in debt-

free living. In debt-free living, one learns the discipline necessary to manage money properly

CREDIT CARDS VS. DEBT-FREE LIVING 4

while simultaneously maintaining financial peace. The net effect of following this path is

immense wealth. Indubitably, with these two options on the table, the person who chooses to live

a debt-free life would be much better off.

CREDIT CARDS VS. DEBT-FREE LIVING 5

References

Bae, S. H., & Ott, A. F. (2008). The public economics of self-control. Journal of Economics and

Finance, 32(4), 356-367.

Ramsey, D. (2013). The Total Money Makeover: Classic Edition: A Proven Plan for Financial

Fitness. Nashville, TN: Thomas Nelson.

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