The Problem Of Consumer Credit Essay

1387 Words 6 Pages
Consumer Credit: Too Easy To Fail

What comes to mind when the term “credit” is used varies from person to person. Maybe credit means a pair of shiny new shoes, or just a fun shopping trip in general. Or maybe credit invokes stress when a pile of bills and late notices comes to mind. Or maybe, nothing comes to mind at all, because cash is king. Like everything, credit over the years has evolved. It has changed its face and grown into something much different from when it began. In today 's digital world, consumer credit has become increasingly accessible, playing into consumer’s impulse buying and causing damage to consumer credit rating. People today use credit for everything, from groceries to doctor’s visits and everything in between. It’s become a way of life and sometimes, it can present a very serious problem.

Understanding the evolution of consumer credit is important because it shows how America’s perception of credit and debt changed over time, from a necessity to convenience, to oversaturation. Consumer credit was born in an old general store, circa 1920 when the store owner extended credit to the farmer, knowing that when the crops came in, the debt would be paid. Eventually, credit continued to evolve and retailers began to offer their own charge cards, or lines of credit that needed to be paid at the end of the month. Then, in 1949, the world of consumer credit changed forever with the introduction of the Diners Club Card (Bankers Rate). The card…

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