Is Plastic Making You Happier?

If you're like most people, you probably own at least one.

And like most people, you've maybe never thought what it's really costing you?

At a recent conference held by the Fabian Society at London's Imperial college, one of the issues discussed was happiness, and, more specifically, why it seems to elude so many of us.

One of the conclusions reached was that one of the greatest causes of unhappiness in the last 50 years has been people's constant desire to raise their level of material wealth (especially in relation to others who have more).

As one speaker noted, 'We're like children on a rainy Sunday afternoon, impossible to please. We have everything and nothing.'

You may disagree, but I can't think of a worse modern symbol of this constant craving than the credit card.

Yes, I know, they might seem a godsend when payday isn't for another week and a half. Having 'free' money can be a fantastic thing...if you manage to pay it back on time that is...

If you're like a great many, though, and only managing to make that minimum monthly repayment, here are 4 things to think about the next time you reach for that piece of plastic?

1 It's very expensive!

2% interest a month may sound like peanuts but that equates to 24% per year. Let's imagine, like me, you lived in the UK, and had an average balance of £8000 on your card... that would mean you were paying £160 a month interest. On the national average salary, that's almost a week's work!

2 It's not your money

You're actually paying someone else for the privilege of making you poorer! That hard-earned cash should be in your pocket, not some lender's. How can you remain solvent if you're continually spending money you don't have?

3 Money burns a hole in your pocket

If you're like me, I can bet you've met or know loads of people who always seem to have too much month left at the end of the money. Yet, I'll bet you if they earned double or even treble their income, they would still find some way to squander it. It seems to be in our nature somehow.

We've all seen those quiz shows where the contestants win big money. What's the first question they're asked? Yep, that's right, 'How are you going to spend it?' I don't recall many replying they would wisely invest it for their retirement.

4 You spend what you don't have

Credit cards give you the illusion of being wealthy. Let's face it, if you were handing over a 1000 dollars instead of that little piece of plastic, you might just stop and have a quick rethink.

It used to be the case that Gold cards (those ones with the massive spending limits) were the preserve of the wealthy, but the banks weren't too long in realizing that if they gave these out to everyone, they would simply go ahead and spend as if they were wealthy. We seem to prefer illusion to reality, somehow.

Way back in the sixties, a French philosopher called Jean-Paul Sartre came up with a concept he called the Practico Inert.

Fancy terminology aside, he was trying to explain in a nutshell how humans almost always (and without realizing it) become prisoners of their own creations.

He used the example of Chinese peasants who needed wood in order to provide fuel and building materials for themselves. The long-term effect, though, was that the continual loss of trees needed for wood gradually exposed their land to flooding and drought.

Likewise, in our modern world, the credit card creates a short-term illusion of freedom and control, but in reality, only makes you poorer and increases your dependency on others.

So next time you're tempted to reach for that piece of plastic, stop for a second and have a think about it's true worth to you.

Is it really making you any happier, or like so many others, could it be seriously damaging your wealth?

About The Author

Colin Mc Caig is dedicated to helping others become debt fr#ee and start their own home-based business. Get his fr#ee 6-part mini-course. Learn the powerful secrets to becoming debt-free using only the money you have today. Send a blank email to: mailto:colindebtfre@demandmail.com

---

Credit Card Incentives

Credit card companies want your business. After all, lending money... Read More

Watch Out For Credit Repairs

It is very easy to find a site that is... Read More

Credit Problems? Heres How to Manage Your Creditors

If you find that creditors are calling you almost daily... Read More

Practical Suggestions for Protecting Yourself From Identity Theft

It's no surprise that thousands of Americans are victimized by... Read More

Have You Checked Your Permanent Record Lately?

As a young student I feared getting bad grades because... Read More

Choosing the Best Low Interest Credit Card

With so many low interest credit cards on offer, how... Read More

Choosing The Best Credit Card To Apply For

Always shop around to get the best deal when choosing... Read More

Saving Money: Quick Cash, High Cost

I didn't think it was possible. But it is. Folks,... Read More

Pitfalls of the Credit Industry

The credit industry if rife with pitfalls. If you have... Read More

Identity Theft : They Got Him

His hard earned money? Gone. Creditors on his back everyday.... Read More

Credit Scores and Loan Applications

Keep Your Credit History Clean - Remove A Negative Credit... Read More

All You Wanted to Know of Bad Credit

Martin Henderson is in a fix these days. Because of... Read More

Do You Know The Top Five Credit Card Mistakes?

When you're dealing with credit cards, you're playing with fire.... Read More

Credit Repair Companies and Credit Counseling

Let's be crystal clear, right up front. Paying someone to... Read More

Credit Card Shocker

Have you ever looked at your credit card statement? I'm... Read More

Cash Back vs. Rewards Credit Cards

Ah, the sweet rewards of using credit!Not only do you... Read More

What You Need To Know About Credit Cards

What is a credit card? A credit card is... Read More

How To Avoid Becoming A Victim of Identity Theft

With identity theft statistics currently at an all time high,... Read More

Are 0% Credit Cards Reaching Their End?

Are Credit Card companies starting to feel the pinch? We... Read More

Building Good Business Credit After Bad Credit

Can you establish good business credit if you have bad... Read More

What Is A Credit Report?

Even if you have heard of a credit report, you... Read More

Credit Help for Real Estate Financing: Five Categories of Your Credit Score

1. Payment History -- 35%The number of accounts paid as... Read More

Credit Worthiness

Credit Worthiness is an important business and personal asset each... Read More

Getting Married? What Are The Finance and Credit Implications?

There is a big difference between looking after your own... Read More

Why Should You Use Credit Cards

Believe it or not, the way society, especially the commercial... Read More

Credit Cards and How To Choose Them:

It may seem like a simple question but its important... Read More

Consumer Credit Reports

A consumer credit report is a factual record of an... Read More

Low Interest Credit Cards Have Many Advantages

When credit cards are used wisely they can be very... Read More

Why Americans Find Predatory Lending Offensive

"Menis - the author translates as "indignant rage" - It... Read More

Minimum Credit Card Payments to Rise

For years, major credit card companies have allowed cardholders to... Read More

Trade Credit: How to Determine if You Should Offer Net-30 Terms to Your Customers

What is trade credit?One of the major differences between consumer... Read More

Keep Your Credit History Clean - Remove A Negative Credit Record From Credit Report

The three major credit bureaus, Experian, Equifax and Trans Union... Read More

Establishing Credit ? What You Need To Know Part 2

In my previous article "Establishing Credit ? What You Need... Read More