Credit Card Debt Outline

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Credit Card Debt Dana Johnson 9 Composition 1 Mrs. Chacon February 16, 2012 Credit Card Debt Thesis: People can get into credit card debt through major life changes, lack of financial attention and education, greed and impatience, and communication difficulties. I. Major life changes A. Divorce B. Death of a spouse C. Loss of a job D. Long term disability II. Lack of financial attention and education A. Not taught about spending habits B. Spending habits III. Greed and impatience A. Keeping up with the Jones’ B. See what they want and hastily purchasing IV. Communication difficulties A. Lack of agreement B. Managing a budget C. Lack of communication over purchases V.…show more content…
Major life changes can happen at any time in a person’s life. You could be going through a divorce, someone you love dies and you have to pay for their funeral expenses, and you could lose your job, or be on a long-term disability. Most people have a lack of education about credit cards. Their spending habits are out of their means and they are over spending. People are greedy and impatient. They are trying to keep up with the Jones’ and have the nicest and the latest things. Sometimes they see something they want and instead of waiting to buy it, they feel like they have to have it now. Another thing is communication difficulties. They can’t agree on things, manage a budget, or communicate on what was…show more content…
The average American in 1972 lived on $11,419 (U.S. Bureau of Labor Statistics). The average American now lives on $49,445 (By Dennis Cauchon and Barbara Hansen, USA TODAY). One of the many causes for bad spending habits is credit cards. The rate that the credit card companies lend people who charge things on the card normally is at a federal rate which is near zero. The credit card companies take this nearly free money from the government and loan it out to us as consumers at a 7 percent rate if you have a good credit standing. If you fall under the category of bad credit like most Americans they charge you 18 percent or more depending on your credit standing and how often you pay your bill. Credit card companies are entitled to a fair percentage but not the excessive earnings they receive from charging us the consumers. Lastly the spending habits of Americans are poor because almost all Americans live out of their means. With poor spending habits passed down from generation to generation, and family to family all we learn and know is how to borrow and dig a hole deeper in
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