Credit helping or hurting can be determined by what side of the fence your on. If you’re financial sound individual credit helps being approved for large purchases like homes, cars and boats. Maybe you have the liquid cash, but you make more with investments than the interest paid on your accusations. What’s the deal for those on the other side of the fence?

There is only a small percentage of our population stated above, the rest are the working poor struggling to make ends meet. Credit is like a catch 22 for those folks because without it they’re doomed, but it is a temporary fix. At the end of the day these people are getting financially raped by their underwhelming wages, extremely high inflation, and unreasonable taxation. To survive they need to use their credit cards and lines to buy basics like food. After awhile the interest and minimum payments become too much for them to handle. I imagine the interest’s rates on credit cards are so high to subsidize when customers can’t pay anymore. Meanwhile the merchants are paid upfront the whole amount, the financial institutes have made their money through the interest. Unfortunately, the working poor are collateral damage going bankrupt, taking one for the team right!

I believe the government is putting a band-aid on anther already great depression. They’re using the working poor to support themselves, and the small percentage of those wealthy already. That is the reason they’re allowing financial institutes to provide those working poor with credit. It keeps the rich getting richer, and the poor becoming even poorer. The real situation here is people have lost hope, never believing they are ever going to save enough money for things they want. They work hard want a better life, and if credit is the only way to achieve so be it. The cost of items is no longer the major factor, it is about monthly credit payments. These individuals also know that if they do end-up bankrupt the government can’t take away certain items purchased on credit.

My concept of credit is not to live on but build with. It just seems that people don’t own a lot outright anymore, instead they owe on everything. I can guarantee if the working poor made more they wouldn’t be so motivated to purchase on credit. Credit is good for those with money, but in the long run it really hurts those trying to get by. Maybe it is time for elected officials to make an economic plan that works for all. Their greed is affecting the well-being of most of their citizens.

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