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Pitfalls of Credit

Credit is shaping modern lifestyle in more ways than we realize. No matter where you go and what you see, advertisements proudly proclaim as a fact how rosy your life would become after you credit have taken credit from them. It seems all of humanity is consumed in the pursuit of materialistic objectives and hence an individual has to take credit to stay clear ahead of his or her peers. Credit has become so popular that personal credit in most nations is far ahead of personal wealth.

We jump on the credit bandwagon by applying for credit cards, for personal loans, for interest free terms, for mortgages, for an I.O.U. at the corner store we even ask for credit on a couple of cigarettes from friends just to get us by until next pay.

Once you jump the credit bandwagon, your woes will never end. Statistics collected by innumerable surveys reveal that credit related suicides are on the rise and many families are breaking up from financial stress. Even people leading decent lives are pushed below the poverty line when they cannot return the amount to the creditors. But the lure of credit does not seem to wane. The word "defer"
coming in the definition of credit does seem ironic when one considers the fact that the benefits we enjoy while deferring their payment come to haunt us in the near future. This deferment leads to high bills, extra work to pay off the credit and lack of joy in life as a result thereof.

The debt collectors of the credit agencies make your life a living hell once you fall back on payment. They hound you for payment; threaten you with assertions like you won't be given credit again making you contemplate flight. Majority of people don't run, but resort to measures like never answering the phone. This could not be called a life worth living, and that too in the name of credit. In this scenario, social responsibility of credit agencies is even more pronounced. They should make sure that those applying for credit do have the means to support it. Credit agencies normally approve credit to people applying by furnishing bogus information and never crosscheck with the reference they had sought. The paradigm shift of society should be carefully studied and remedies found. Earlier, it was totally acceptable to live within our means and without luxuries. But in this century, it has become a fashion to live a life of luxury even if credit has to be taken for it. Budgeting and saving have become practices of the past. It is the prerogative of an individual to decide their spending and saving behavior. But one must not underestimate peer, family and media pressure. Gutschrift Halteseil is the owner and operator of Ya Credit, a leading Internet directory for credit information. For more credit information and resources, be sure to visit: http://www.yacredit.com

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