Plastic rose in fame from a scientific wonder made by synthetic polymers, referred to as Bakelite; it was invented in 1907. Plastics had an environmental falling out because it is environmentally non-biodegradable. The environmentalist world is now seeking a replacement for the plastics scourge. But untreated metals corrode glass breaks, leaving open the miracle of plastic. Making straws out of synthetic wood health products is not feasible because of wood toxicity and environmental safety issues. So plastics will not go gently into the night.
Enter the Credit Card
Credit cards are formats that represent a legitimate exchange for currency. The original transactions were from cowrie shells, bronze, and copper imitation cowrie shells were gold and silver nuggets, Chinese deerskin notes, and Native American stringed wampum beads. While these items served its purpose, the materials used were not successful, requiring the need for a dramatic and historic cultural shift. That would create the demand for currency that was pocket size portable, secure having no intrinsic value. The development of new money was a slow walk over 5,000 years.
Shaking Up the Marketplace
Credit cards were a direct result of the 1800s westward expansion, which created credit coins and charges plates, used to extend credit to farmers. The farmers then paid for this credit after the crops came in and sold. The modern concept of a credit card took off in the early 1900s. Several U.S. department stores and companies (oil) issued proprietary cards that were accepted only by the issuing merchant for its customer’s convenience, promoting customer loyalty and customer service. The modern credit card was backed up by the card holder’s bank deposits, deposited in the customer’s bank, and referred to as a debit card.
Tips On Using Your Credit Card
A. Pros and Cons of Credit Card Use
Pro:
Financial planning use of credit card by building your credit, which creates a history of borrowing and paying back the money. Credit reporting agency that tracks payments to determine your credit score, interest rate, and credit limit. Credit reporting determines your qualification for a credit card or loan.
Con:
There is a higher Annual Interest Rate for borrowing on credit than for a traditional loan. If the balance is not fully paid each month, there is a service fee and penalty if payment is late. The interest rate for cash advances higher than for standard loan rates.
Pro:
They’re more secure than cash. The credit card issuer will put a hold on the use of the credit card if lost, stolen, used fraudulently, or for suspicious activity if such activity is not typical spending behavior.
Con:
It is easy to overspend with a credit card. Credit card use without a budget creates overspending. You should not spend up to the limit of the credit card, which will accumulate debt with the added interest payments.
Pro:
You can accumulate Rewards Points such as cashback, collect airline mileage or pay for a product from stores that have agreements with the credit card company.
Con:
Your credit can be damaged if your app only for too many credit cards, which decreases the length of time of credit card use and could create an adverse payment history. Lenders become suspicious if you need access to too much credit.
Consolidating Credit Card Debt
America’s credit card debt is rising and is higher than the financial peaks, which fueled the 2008 Financial crisis. In the last quarter of 2018, American households’ credit card debt ballooned to $26 billion. What financial strategies are available to control credit card debt?
1. Seek a non-profit organization that provides counseling with a credit counselor to control debt through a budget process and learn the principles of money management. A non-profit organization will charge no fee.
2. Seek a personal loan, to pay your outstanding credit card balances, and build your credit. If your credit rating is less than in the good range, a personal loan with a realistic interest rate may not be the best solution; If you submit a pre-qualification application for a loan, this should not affect your credit score.
3. Use a Balance Transfer Credit card which, over some time, no interest rate or a lower interest rate than the card you want to reduce the debt, will save you money.
4. If your employer has a qualified retirement savings plan, you can borrow from you 401(k). You must study the rules and guidelines relating to a 401(k) loan.
5. If you own a home with equity, consider a home equity loan.
6. You may contact a family member or friend who is willing to help you.