College credit card debt, the middle class welfare
- Kennedy-Xpressway
- Apr 5, 2017
- 3 min read
I'd like to view student loans, car loans, credit cards or any system that allows you to accumulate debt "the middle classes welfare" that has to be paid back. All of these entities are usually marketed and used mainly by the middle class. Debt is something that gets millions of people financially stuck every year. It doesn't necessarily allow for the accumulation of wealth to occur and instead is a cycle of borrowing, spending, and paying back. In America, if you want to buy a car, house or other luxury items you will A.) have to pay for these items completely in cash or B.) take out a loan. As soon as you turn 18, credit card companies start sending you applications in the mail. If you had a parent like my mom, you'd never see them because they would be ripped up and thrown in the garbage. My mom always advises me to not open up credit cards you don't need. Credit cards are a luxury awarded to those who have good credit. Although it sounds nice, most people don't have the privilege of buying cars and houses and paying for them fully in cash. That is why it is important to slowly build credit over time so that when it is time for you as an adult to purchase a car or a house, you are able to.
The real question is, do you really need a credit card? It seems like such a fun thing to have. Credit companies try and draw you in with rewards you can receive for using your card frequently as well as the many student cards they offer. I can say throughout my 3 years in college I did not need a major credit card and the only line of credit I opened was with a department store. Though I did not financially need that department store card I opened it to slowly build credit, and it worked. I currently have a "good" credit score from using this card on small items that I knew I could financially pay for with my own money that I earned.
Since financial debt is essentially a welfare system I try to shy away from creating it but I know that at some point in time I will need to have good credit for financial stability in this capitalist society. When it comes to credit cards, I'm in the middle. It's nice to have the freedom of a credit card but at the same time if you don't limit your spending then it can easily become a financial disaster for you in the long run. Nobody wants to go through the process of filing for bankruptcy. As a college student, I recommend applying for one (maybe two) small department store credit cards. If you think you can handle more go for it, but make sure you monitor your credit card bills, credit score, and report. A great website I like to us for that is CreditKarma.com because it is actually FREE. So many websites advertise they are free sources to check your credit score but there often is a catch. Credit Karma also has resources to help you manage your credit and debt. If you responsibly manage your credit and educate yourself on the basics of finances, bankruptcy won't be in question and debt won't be a demon you have to battle as you enter into adulthood.
Comments