The Day Your Credit And Debit Cards Die Before Your Eyes And All You Have Left Is What You Have On You!
By Susan Duclos
All News PipeLine
July 27, 2015
According to the article “Credit card debt outstanding is now back up to $900 billion, a number last seen during the Great Recession before the great deleveraging. Americans have used debt as a means to cover up the reality that the middle class is disappearing.”
According to an article from Mainstreet.com in September 2014, one in five Americans (20%) were unable to make ends meet without the help of a credit card, while another 22% said they would have to alter their lifestyle if they only used cash. Furthermore, the findings show that only “27% would be able to keep up their current lifestyle if asked to use cash only, while 32% said they would make some changes but don’t see any major hurdles stemming from the switch.”
That isn’t the only factor though, as another report from The Atlantic in April 2015 shows that people using credit cards are will to spend twice as much for an item than if they were using cash.
Prelec and Simester’s findings downplayed the importance of logos, but further solidified the theory that credit cards extract more money from people than cash in identical circumstances. The two researchers found that their Boston-based experimental subjects were willing to pay strikingly different amounts of money on tickets to a Celtics game, depending on their method of payment. Those paying with cash found roughly $30 to be a reasonable price, while those paying with credit on average were satisfied with $60…..
There is no doubt that Americans have an unhealthy reliance on credit cards once again and that reliance is growing with the number of people that cannot make ends meet without the use of their credit cards, which puts them farther into debt.
WHEN YOUR CREDIT AND DEBIT CARDS DIE BEFORE YOUR EYES
We have been warned by investors, trends forecasters and financial gurus that another recession is coming, one that will make the 2008 recession seem like a walk in the park in comparison, compunded by the fact that the US Dollar is has hit the average amount of years historically that any currency holds the word reserve status.
The Rest…HERE
