In Chicago and around the country, people are over spending on their credit cards. Maybe it’s the have it now, pay for it later mentality. Maybe it’s the convenience of not having to carry cash. Maybe it’s the enticements of rewards by using the card. Whatever the reason, folks have become too reliant on credit cards in their lives. The video below talks about how using your credit card instead of cash can actually increase to the total dollars that you spend. In many cases, this will lead to an eventual bankruptcy filing.
Jesse Barrientes:
I find that a lot of folks are simply using the credit card to live. They are paying – they are buying groceries or they are buying things that they need and then they are transferring the balance to another card and they been doing this for the past several years here to keep afloat.
David Siegel:
Well, the whole thing with the credit cards in my opinion is a racket. They’ve gotten people so addicted to the points involved in the perks involved with these cards, that people are using it for everything where in the past they didn’t use it for everything. They are swiping the card at McDonald’s, at the gas station, at the grocery store, everywhere they buy anything. And what they are doing is they are overspending.
Studies show that when you don’t use plastic and you actually have to pull cash out of your pocket, you pay a lot less or purchase a lot less. And these perks Jesse, they are not so great. The 1% back, the airline flight, they can do without those. They would be better off spending less, using cash and that’s what a lot of clients have to do after they get a fresh start.
