How much can a credit card influence our lives?

Credit cards were once a novelty for some, regarding possession of one as being a status symbol. I recall the mid sixties when my father brought home a reasonably well maintained Vauxhall victor car. This car was supposed to replace the motorcycles that he had used for years. He was proud to bring this good looking, light green prize mobile home to show off to his friends and family. Suddenly, for my father, he was raised up on to a pedestal by attributes of wealth and possessions, which others only dreamed about. My mother was happy; she could now think about enjoying a family day out, with the whole family travelling at the same time. No buses, no trains, no walking, beaches in the summer, ease of shopping and much more which led towards an easier life. Within a few weeks of getting this car and having used it several times, I’d noticed that my father became worried. He wasn't his usual self. However, my mother knew what was wrong with him……

The credit card bill arrived

The day of accountability was coming and my father knew that he would be faced with pressures from the credit card company if he couldn't maintain the debt which he created. He reflected on his decision to buy a car on the never never, through his credit card and was very aware that he had made a bad financial decision. He knew that his debt needed to be honoured, as he also knew that further spending on the credit card also was unnecessary. But time passed, although the debt remained and grew with interest and other charges every month. My father carried on working which helped to support the credit card debt although his physical health suffered as a result of the accompanying worry about making ends meet in the family budget. My mother took on extra work to also helped out with finances; various luxuries and treats which we had all become used too also had to go. Eventually the car was sold, which, subject to further interest and other charges which had been applied to the credit card debt, wasn't enough to repay a by now, larger debt.

The pressure increases

After several months, the credit card debt was taken to court for recovery and eventually court bailiffs were instructed to enforce action for collection with authority to remove from my father’s house, suitable personal possessions to satisfy the debt. This was a very traumatic time for my mother and as a consequence, frequent arguments occurred between mum and dad.

Relief from debt

My father, after advice decided to relieve everyone in the family from the immense stress that existed by declaring himself bankrupt.Very soon after bankruptcy, everything settled down and life kind of became normal again, however the 2 year period between when my father first used his credit card to the point of bankruptcy could only but slowly fade into history. This period was indeed emotionally draining for everyone.

Prisoners of conscience

Credit card debt, indeed any debt, holds its incumbents as prisoners of conscience. It can take from a human being, dignity, good morals, joy, relationships, honour and fidelity and can give to a human being, worry, bad health, pride and dishonour and much more.

Re – branded financial products

Since the sixties, credit card companies and financial lending institutions have become wiser, as also have consumer protection agencies but in spite of tighter controls on credit, many national brand credit companies have only re branded their credit product to keep the consumer closer to their credit push, whatever the state of the economy. Unsuspecting people with money problems and equity in property therefore very easily grasp at such re branded products.

A light in a dark tunnel

In recent years some credit card companies and financial institutions operate a “no credit” policy on credit cards issued and for a small fee they will issue cards which can be used in a similar way as if they were credit cards, but without the credit. They function as debit cards but with a wider audience, particularly travellers and internet. These cards have become very popular and advertisers who market them frequently do so on the basis of credit repair in order to re-build your credit and create some good history with credit reference agencies.

Take advice before taking credit

If you have accumulated debt of any kind there are several organizations in many countries, particularly the west, who can advise you and whatever else you do about your credit, NEVER ignore your debt.