Debt and Despair
The final problem with credit card purchases is directly related to a more emotional dimension of these purchases — debt. Americans are accumulating record amounts of debt at breakneck speed, perhaps because of the overabundance of great credit card offers.
Credit card companies love to target college students, because they know that college students are notoriously poor and unrealistic. If these companies can “help” college students to spend money that they don't yet have, they can be assured of monthly payments, and better yet, they can freely raise APR rates when those payments don't come in on time.
These companies can also train young people to live by a debt mentality, so that even if they can get out of debt at certain phases of life, they will inevitably fall back into debt when the lure of certain items becomes too much for them. If you train people to buy more than they can afford — or to live by “soft,” unrealistic numbers instead of limited resources — you can keep them in a continual position of dependency.
Should I consolidate my balances with one of those low-interest credit cards?
Beware of credit card offers that offer a six-month low APR. Any credit card company that promises a temporary low rate may be planning to raise that rate to a much higher level after they've gotten you hooked. They are also free to raise your rate any time you miss a payment. This steady drain on your finances will cost you in the long run.
Ideally, before you make a credit card purchase, consider the emotional and economical costs of the purchase. Ask yourself how you will
