It’s easy to blame those big, bad banks for the financial mess many people find themselves in today. But, all too often, the people who are hurting the worst and complaining the loudest have no one to blame but themselves.
A few months ago I made a purchase at a well known department store. When I checked out, I was told that if I would answer a few questions, I could get a 10 percent discount on my future purchases if I signed up for a credit card and agreed to pay 21 percent interest. No thanks.
On average, credit card purchasers pay 12 to 20 percent interest depending on their credit ratings, and, of course, those who have the poorest credit ratings are the ones who are most likely to charge . I suspect that includes many of the Wall Street protesters.
Long-term loans for purchasing homes, automobiles, home appliances, or for starting businesses make sense, but when people don’t have enough cash to pay for “Surf and Turf” dinners, an evening of entertainment, or a Caribbean cruise, they shouldn’t be mortgaging their financial futures.
Unfortunately, the federal government operates in the same manner, which accounts for why the interest on our national debt is now more than a billion dollars a day.