Are Debtors Digging Their Own Graves?

Who Is At Fault For Credit Card Debts? Americans have become more and more dependent on credit cards, a rapidly growing issue. Although some may disagree, the problem with the credit card industry is not the creditors. It is actually the cardholders. The fault lies within the consumers that do not fully understand their financial circumstances therefore, spending beyond their ability to repay their debts. Having a line of credit should be a convenience, not a must.

Reliance:
Credit cards have become a necessary part of our everyday lives that we all have and use at some point. However, it is mind-boggling to think that many will use credit to make purchases knowing they cannot afford it. "Even as …show more content…
Limits within an individual's capability should be recognized and utilized. One should know how much he or she can afford to spend and realize their ability to repay the debt. If one cannot afford something, they simply should not get it. If one does not know their maximum overload, then themselves are only to blame. "Consumers who take on debt must be careful only to accept debt they can afford to repay" (Ruben). It can be a start of a financial disaster when people purchase goods and services on credit without the means of paying it back. Undoubtedly, the majority of the consumers are under the assumption the situations with their debt will get better. “Optimism Bias produces decisions based on the upfront and obvious costs, as opposed to those that arise later and depend on certain contingencies” (Garcia). Credit card companies entice consumers with buy now pay later sales, which many fall for. The consumers, therefore, must set their own limits to avoid a credit …show more content…
It sounds crazy, but if they are robbing Peter to pay Paul, the cycle must continue. Borrowing from one creditor to pay another will not better the situation, it will only get worse. “We tend to blame the debtors rather than the institutions that did the irresponsible lending” (Williams). Although it must be rare for consumers to apply for credit knowing their inability keep up the payment, it has to be even rarer for creditors to approve consumers knowing they will not fulfill requirements. The creditors are not in business to lose money. They will not intentionally give a line of credit knowing that someone will default. “If you set out to hang yourself, the banks and credit card companies are more than willing to give you the rope” (Vyse). Many consumers are willingly paying high interests, late and over-the-limit fees every month; and continues to use credit. Ultimately, it is the consumer that determines whether they use the