Tracing The Roots Of Credit Card Fear

Happy Halloween everyone! Here’s hoping you enjoy your night of thrills, while making your customers that much more excited about shopping in your store. As we detailed in our last blog, allowing your customers to use their credit cards provides them with many benefits. So you’re undoubtedly reaping the benefits of providing such an option. But with tonight being what it is, it brings to mind the fact that some people are simply afraid of credit cards.

What’s so scary about credit cards? Well, on NerdWallet.com, Lindsay Konsko writes that in spite of being able to build a credit score, earn rewards points and not worrying about carrying cash, some people are just plain scared to use them. And she says that the roots of the “anti-credit card attitude” can be traced back to the values that people grew up with.

“I’ve heard some people say, ‘I hate debt.’” writes Konsko, “That’s a generally good philosophy, but what’s lacking in that statement is that some debt is both good and essential. In order to have a good credit history, you have to have had credit in the first place. You will find it difficult to get a car loan or a mortgage if you lack a credit history. Mortgage debt is a good thing, too. It permits you to buy a very expensive asset that you couldn’t otherwise afford.”

What makes some people have such a strong fear of debt? It has a lot more to do with one’s self-control and discipline than it does with actual credit cards. As everyone knows, credit cards themselves don’t put people into debt. It’s all about how credit cards are used that make the difference. Many credit card users pay their balances off on a monthly basis. Others decide to extend payment over time.

Naturally, the longer one extends payment, the more interest he or she accrues. This is how debt accumulates. So people do need to be mindful of how much they’re spending and if they’re able to pay off their balances each month or not. The idea of going into debt worries consumers who may not have the discipline necessary to enjoy the benefits of credit card use. As Konsko points out, some debt is definitely unnecessary.

“For some people, debt is simply a scary thing,” she writes, “They don’t understand it, and they hear stories of how people’s lives have been destroyed by debt. The simplest act, then, is to just place the concept of debt into a box labeled “avoid,” and never have to deal with it. Others feel that buying something when they don’t have the cash on hand to pay for it is just, well, wrong. That attitude tends to be rooted in family tradition and values.”

So how can we eliminate the fear of credit cards in our society? It all has to do with being informed. When a credit card is used, it does not automatically put a person in debt. It simply gives that person the ability to pay for the charge by a particular due date. If the charge is paid for by the due date, no interest accrues and no debt is accumulated. However, if the charge is not paid for, interest accrues and debt begins.

It’s actually quite simple to avoid! People should simply not purchase items that they cannot afford if they don’t want to go into debt. However, credit cards do provide people with the freedom of being able to purchase big ticket items that may be necessary in their lives. As long as they know what they’re getting into, there is nothing to be afraid of. Credit cards aren’t scary. They’re actually our friends. You just need to know how to treat them right!

To begin accepting credit cards at your store today, call Canadian POS Corporation at 1-877-748-2884!