Quote:
Originally Posted by 8gv
I do not gamble but...
Different people enjoy different types of entertainment.
Some golf, bowl, see movies in a theatre, knit, or buy antiques.
It makes no difference to me what other people do with their money.
Regarding the payment of a $3 purchase with a credit card...
Credit card rewards programs incentivize this.
My wife has companion status with her Southwest Air credit card rewards program.
That results in me flying for free (with her) about twelve times a year.
In the business from which I retired, transaction speed was critically important.
It was determined that a cashless (credit card or debit card) transaction was faster than a cash transaction.
Customers fiddling with their coins and bills took longer than those who simply presented their card.
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That is all true and credit, if managed correctly, can be a benefit.
However, less than 40% of people pay their credit cards in full every month so they are subject to interest. The average interest rate for new credit cards is 19.21%.
People on the lower earning end of the spectrum who always use credit cards are giving up almost $1 out of every $5 they take home just to pay that interest.
Businesses that operate on slim margins need to charge more to offset the fees they lose to credit card companies. For that reason, in many cases as consumers we pay a higher price.
So, credit managed poorly is expensive!