Why Babies Never Go Into Debt
May 21, 2007
When a baby is hungry, tired, or angry they cry. As we get older we become socialized and learn to hold back these crying fits to integrate into society. In some cases this habit of suppressing our emotions can be dangerous to our pocketbook.
No Money = No Stuff
When kids want something they don’t have the money for their initial reaction may be to stomp and scream because they can’t afford it. They throw a temper tantrum but in the end they walk away without it because they don’t have the money.
No Money = Use Credit Card
It’s too bad that we can’t carry those traits over to adulthood. All too often when we can’t afford something now, we whip out the American Express. It’s much easier to put it on the credit card and breeze through the line. We can worry about the card balance and interest fees later in the privacy of our own home.
Throw a Fit, Save Your Wallet
If only we could revert to those toddler years. We’d be much better off in the end if we threw a fit in the middle of the store because we didn’t have the money and left empty handed. Sure it might be temporarily embarrassing but we wouldn’t be making someone else rich by using credit cards and killing our own financial independence.
All posts by Ben Edwards
I think the credit card companies are making some pre-emptive changes to try and appease Washington so no legislation will go through. I don’t think it will work given the numbers of people that are negatively effected by credit card debt.
Honestly, I think its a bit too much to hope that the credit card companies will reform themselves. I think it will take Washington stepping in and actually doing something before the credit card companies do any type of “reform.” The longer they can keep charging interchange fees, late fees, and extending credit to people they know probably shouldn’t get it – the better it is for them in their minds.
I agree it would be great if all of us were responsible, but it would be nice to see some responsibility from the credit card companies too.
Dreader, those credit card offers are relentless, they just never stop coming. Maybe that’s one thing the credit card companies will change as part of their recent “reforms”.
Tehn, cutting up the credit cards would do the trick as well but credit cards are useful financial tools if used responsibly. It’s too bad we can’t have more self control.
Interesting way of looking at things.
As adults, I believe that we should have a strong enough will power to just not yank out the credit card and walk right by the item. The will power of a baby is just not as strong.
Perhaps just cutting the credit cards up with a pair of scissors would work just as well.
Tehn Yit Chin
You raise a good point but if a child were to get as many credit card offers as I do in the mail I can’t see him not getting into debt. And another problem is I don’t know many adults who can really fully understand all the fine print, fees, and conditions that are involved with credit cards either. You should read the last cover story from Business Week titled The Poverty Business: http://www.businessweek.com/magazine/content/07_21/b4035001.htm?campaign_id=rss_daily – it does a good job of shedding some light on this and is a very good read. I think a lot more needs to be done to make it as clear as just acting like a child because as it turns out a lot more people are babes in the woods on this issue than know it. I didn’t even understand what interchange fees were until I learned about them from a group I work with, http://www.unfaircreditcardfees.com, and those are hidden fees that you never even hear about.
Yeah, the older we get, the more problems we have and credit cards are among the most annoying ones.Applying for a credit card, you begin your credit score
and this magic number influences the whole of your rest life. Credit score is set by financial giants and you are completely dependent on it. We become like slaves. Oh, I wish we were children yet.