January 01, 2009
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News: Hold the Lifeline: The CC Lifeline, that is.
In spite of all the recent difficulties with credit cards, many Americans must still cling to their necessity of having them around. When medical problems crop up, they find they cannot do without them. Medical providers are still demanding payment up front and many people simply do not have the cash on hand. However, the difference now is that, for many, credit card interest rates have jumped to where that candle is burning short. Even those Americans who pride themselves with being thrifty are becoming victims of out-of-control debt. Record numbers of Americans are being forced into bankruptcy and seeing their dreams of retirement crushed. The dismal stock market has left them with just trying to survive on Social Security. Returns on CDs, stock investments and saving accounts just aren't there any more. So, these people are largely left to the fate of credit cards when trying to survive high medical bills and to buy the bare essentials of life.
All it takes is one serious medical encounter to lock people into the relentless under-tow, which would serve to drag them under, should they falter in their struggle. With nowhere else to turn, people are forced to turn to the only lifeline left to them – credit cards. Many who had nicer homes, have already down-sized to mobile homes and no longer have home-equity to fall back on. Personal loans just aren't there any more but still, the home repairs and medical bills just keep flowing in. For many Americans, credit cards are the only thing left. Dream as you may, when all the other liquidity is gone, survivors must employ what limited resources are left to them.
These extreme conditions are relatively new in recent years. Not so many years ago, credit cards were considered by most as a convenience medium alternative to carrying cash, with better records keeping. Debt was usually paid off each month to avoid those pesky finance charges. There was little ongoing debt for most people. But today, credit card debt is suddenly spiraling out of control, ranging between $8.000 to as high as $50,000 for ordinary Americans.