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
MORE RESOURCES:
Bush: US will work with partners on credit crisis The Associated Press - WASHINGTON (AP) — President Bush says world's wealthiest industrial countries will work together to attack the credit crisis spreading around the globe. ... World Leaders Offer Unity But No Steps To Ease Crisis Bush vows coordination with world powers on financial crisis Time to Act |
 Boston Globe | Without real leadership, we face disaster guardian.co.uk, UK - There is a combination of a worldwide bank run, seizure of credit markets and collapse of asset values that could plunge the globe into a depression. ... Video: Overseas Markets Fall on Financial Turmoil Fears Asian credit default costs soar to record - traders Stocks rally fades on credit market worries |
 The Associated Press | US will work with partners on credit crisis: Bush CBC.ca, Canada - It was the 21st time in 26 days that the president has spoken publicly about the credit crisis gripping financial markets and dragging down stock markets. ... Video: Bush: 'We Must Work Collaborately to End Crisis' |
Is my credit union safe? Los Angeles Times, CA - By E. Scott Reckard, Los Angeles Times Staff Writer The government-run National Credit Union Share Insurance Fund insures most deposits at credit unions, ... Credit unions alternative to banks Got Your Money in a Credit Union? You Too Are Safe In tumultuous financial times, credit unions might be an option to ... |
 China Daily | Lehman Credit-Default Swap Payout Could Climb as High as $365 Billion Washington Post, United States - By Heather Landy NEW YORK, Oct. 10 -- In what may shape up to be the most expensive payout ever in the credit-default swap market, sellers of insurance ... STOP FINANCIAL WMD'S: Credit Default Swaps Lehman Credit-Swap Auction Sets Payout of 91.38 Cents (Update1) Insurance on Lehman Debt Is the Industry’s Next Test |
 BBC News | Credit crisis should not hurt poor, ministers urge Reuters - By Lesley Wroughton WASHINGTON (Reuters) - Major economies should not use the global credit crunch as an excuse to renege on aid promises to poor countries ... Video: IMF: Timing right for G7 Credit CRISIS ALERT IMF endorses plan by rich countries to fight credit crisis |
 Los Angeles Times | Fears Grow That Tight Credit Could Crush GM, Ford NPR - Standard & Poor's downgraded the credit of both companies and their financing arms this week. AFP/Getty Images Ford F-150 trucks sit at a dealership in ... Video: Money Minute: GM, GE, Oil CREDIT WATCH HITS GM, FORD GM, Ford too big to fail? |
Is the era of easy credit over for the long haul? International Herald Tribune, France - For Clark, and for a nation of consumers heavily dependent on credit, there are growing signs that those rough times could prove to be more than just a ... |
 WNCT | Anatomy of the American Financial Crisis: How It is Turning into a ... Center for Research on Globalization, Canada - Its failure created a domino effect among other international banks that had lent to each other in the international credit chain. ... Where did all that 'lost' money go? Credit freeze sees small cracks Market news this week for strong stomachs |
Financial troubles spread to credit unions Los Angeles Times, CA - By E. Scott Reckard, Los Angeles Times Staff Writer It's not just giant banks on the brink these days: Losses are clobbering nonprofit credit unions that ... |
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