Fantastic Plastic

Pressure Percolating

On February 8 1950 Frank MacNamara,Ralph Schneider, And Matty Simmons made the first credit card charge at the Major's Cabin Grill. This launched the company then known as Diners Club and the age of plastic was born. Mr MacNamara was bought out by Alfred Bloomingdale and for 20 years these four men were the only participants in the club.
Of course this was only the start of the industry, it went on to spawn Master Card, American Express, and Visa. Today people are absolutely sure that survival would be impossible without their credit card within inches of their grasp.
The financial crisis we face today in due in a large part to this innovative way of gathering debt.
The credit cards that the majority of people use charge between 9- 30% interest rates. ( which should be considered usury or loan sharking ) and allow the borrower the luxury of making "minimum" payments. 75% of people will max out two through five credit cards for an average of $2500 - $5000 debt and only be required to make monthly payments of $10 - $15 on the accounts. They have very little hope of paying these balances off and resort to either getting additional cards or filing bankruptcy.
Every major retail store in this country will try to get the customer to sign on to their credit card by using discounts upon approval . One of the main problems is that you will be approved as long as you have made your minimum payments.Credit card debt is astronomical and most people are drowning in it. People tend to use credit cards like they would a rental automobile, with the attitude that what the heck it's not mine.Let me drive (or spend) it like we stole it.
In my house, as a child, the mantra that was preached was that your best friend was the almighty dollar and pay your own way.It seems that most people can't enjoy life living within their means.The financial bailouts being so generously provided by the federal government will not help the individual, it all comes down to Common Sense.
One of the most sensible things to do, is to open a debit card checking account. Most financial institutions offer these and the majority of these accounts will even pay interest. You will be spending the money that you have and not what isn't yours.

So teach your children well!