We all have friends that use credit cards and pay them off every month. But how many really do? Think about how easy it is to only get by making a minimum payment one or two months. The interest may only be but a few dollars, $5, $10, $20 of interest for the month. That is actually on the very low end. But credit card companies love for people to do this, because if one million people thought this way for one month, then they collect $20 Million dollars the next month off of everybody. It’s a huge profitable business and that is why credit card companies are the number one marketing spenders in America today.
The New York Yankees emblem on a credit card has been distributed more than any other MLB card. Thats nothing Citi Bank was close to signing a $400 Million Dollar check to claim naming rights for the new ball park that is replacing Shea Stadium. Citi Bank can afford it because of Americans paying interest payments every month. Studies show that if people were to only pay minimum payments, it would take a person 40 years to pay off their current balance. These companies are making money off of everyone who has credit cards. It’s a curse on America’s financial system.
Having credit cards in our financial system is like having a venomous snake as a family pet that we continue to feed so it grows. We should all stomp on the head of this financial creature. If you own a credit card, please be careful as some companies are starting to raise rates. Of course they tell you ahead of time in a pamplet they send in the mail that looks like an old college textbook, who wants to read that.
People are now starting to turn to pawn shops and pawn brokers to borrow money. Pawn shops are recording an increase in profits because of people leaving their merchandise in pawn shops and never returning to purchase their collections back. For example, you can pawn your tools for quick cash, but if you do not pay back the money with interest of course, the pawn shop keeps your tools and sells it at a profit. Good for pawn shops, bad for individuals who sell their merchandise for a fraction of what it is worth. Its a ripoff, in fact if you take something nice like jewelry, they will go to the back and see how much its selling on eBay and then offer you chump change.
