Credit cards help people to carry out transactions fast and secure. This is the reason why even minors got their money cards inside their pockets wherever they go. No doubt, a lot of people are enticed on paying their bills and purchasing items without the actual releasing of cash. But apart from these benefits, financial experts also identified serious problems of using the cashless system of paying bills.
According to famous financial guru Liz Frazier, the number of people who are suffering from high credit card debts exponentially increased this year.
She said that in the U.S. alone, the accumulated credit card debt of the citizens already reached more than $1 trillion. Another data published by the
CreditDonkey.com revealed that most of the U.S. citizens got $5,331 credit card liabilities.
Frazier admitted that these figures are indeed scary. If there will be no concrete measures to counter the problem on credit card debt, this will definitely lead to a total financial embargo.
Frazier noted that one of the effective ways to resolve the problem on credit card mishandling is to ban the minors from using it.
She said that juveniles are not that adept in terms of handling their finances and letting them handle their credit cards will surely yield negative results. She further noted that minors are very vulnerable to overspend and purchase items which they do not actually need.
She also reminded the parents that the recent credit card interest already reached 19.24%.
Frazier stressed that this interest rate is not an easy number to endure.
Now, to those parents who really trust their children to handle their own finances, Frazier said that it is their right to do so. However, she emphasized that children must know the consequences of mishandling their finances before it becomes too late.