How Credit Card Debt Is Running America

Jan 08

America has an economy that is entirely based off debt. In order to qualify for a loan, mortgage, or financing, you have to acquire debt and make payments toward that debt to build your credit. One of the most effective ways to build that debt is to use credit cards. Credit cards allow you to quickly collect debt and make payments toward that debt in order to build your credit. Below, you will find how credit card debt is running America and what it means to you and me. As a bonus you can check out for more information and resources.

Credit is required to do much of anything in America

If you want to succeed in America, you have to build credit. With credit card debt being one of the most reliable ways to build your credit, you end up with an economy that is consumed entirely by debt. If you want to qualify for a loan, buy a car, or be approved for a mortgage, you have to have good credit. How much money you make is of course a big factor, but without good credit, your income won’t even be considered.

Credit card debt is the easiest way to build credit

If you want to get ahead in America and build a strong credit score, you have to subject yourself to the use of credit cards. There are very few other things that can build your credit as reliably as a credit card. Car loans and other types of financing generally do not even build your credit as much as regularly using your credit cards can. Credit card debt is the number one type of debt and similarly, it’s what most people struggle with as well.

America’s economy encourages spending, not saving

It’s no secret now that America created their economic system to encourage spending and not saving. Being frugal and protective of your money is looked down upon and if you don’t jump onboard the credit card debt bandwagon, you are going against what society has openly accepted. There are a number of reasons why America’s economy is fashioned in this nature but it’s primarily because spending is what keeps businesses alive and profiting. Without a society that spends money, America’s businesses would not be as successful as they are today.

An economy based off debt benefits the top

When you have an economy that is based entirely off debt, the system benefits those at the top. Evidence has shown that one of the best ways to improve your wealth is to be frugal with your money and make smart investments. However, with the current economy, the low and middle class of society are encouraged to spend their money and stay within the classes that they are at. America’s economy keeps low and middle class families struggling and it benefits those who are already wealthy.

America’s economy is based on credit card debt, but there are ways that you can build your credit without subjecting yourself to debt. For instance, paying your credit cards in full on a month-to-month basis can build credit substantially, but it’s basically the same as directly withdrawing from your debit account.