Press Release

Why Call it a "Credit" Card

It's not surprising that the level of debt in the country is rising. Banks are handing out credit cards to college students without jobs, giving out new cards to consolidate old cards, affinity cards to help various causes and creating even greater and better new levels of distinction and social status based on the color of the credit card.

Everyone wants to receive credit. We want credit for a job well done, credit for our accomplishments and to be credited for our achievements. Somehow the marketing world has successfully created the belief that a "credit" card somehow gives people something that they've earned or achieved rather than just lending money.

Our lives are inundated with commercials and other advertisements touting all the things that you can do with your credit card. The "credit" card gives you the freedom to take that vacation you've always dreamed of, the ability to see a Broadway show, watch the Olympic games or have "priceless" memories.

But what about that "credit" that you've "earned" or "deserve"? One would think that this "credit" would come with a reward, not an interest rate of 20, 24 or even 28 percent per year. Looking at the interest rates and other costs, those "priceless" moments carry a hefty price tag that can take years to repay at a cost that can double or even triple the original charge.

Perhaps if the credit card issuers were a little more honest up front, there wouldn't be such a high level of debt and nearly 2 million bankruptcies projected for this year alone. The first step to solving this crisis is to have the "credit" card called exactly what it is: a "DEBT" card.

There's little doubt that if people were to open their mail and see slick solicitations for "debt" cards, most would take a different look at that small piece of plastic that can change and even ruin lives.

Taking the process even further, if people are confused by "debt", let's just call a credit card exactly what it is: an "I.O.U." card. If consumers took out their "I.O.U." card each time they were going to use it, they might be reminded that the charge is not free money, but rather an amount that has to be paid back and is owed to a bank for that purchase.

In a perfect world, the lenders and banks would call a "credit card" a "debt card" or an "I.O.U." card. Then consumers might be less willing to owe their futures to high interest rates, late fees and annual renewal charges.


	Why Call it a "Credit" Card It's not surprising that the level of debt in the country is rising. Banks are handing out credit cards to college students without jobs, giving out new cards to consolidate old cards, affinity cards to help various causes and creating even greater and better new levels of distinction and social status based on the color of the credit card. Everyone wants to receive credit. We want credit for a job well done, credit for our accomplishments and to be credited for our achievements. Somehow the marketing world has successfully created the belief that a "credit" card somehow gives people something that they've earned or achieved rather than just lending money. Our lives are inundated with commercials and other advertisements touting all the things that you can do with your credit card. The "credit" card gives you the freedom to take that vacation you've always dreamed of, the ability to see a Broadway show, watch the Olympic games or have "priceless" memories. But what about that "credit" that you've "earned" or "deserve"? One would think that this "credit" would come with a reward, not an interest rate of 20, 24 or even 28 percent per year. Looking at the interest rates and other costs, those "priceless" moments carry a hefty price tag that can take years to repay at a cost that can double or even triple the original charge. Perhaps if the credit card issuers were a little more honest up front, there wouldn't be such a high level of debt and nearly 2 million bankruptcies projected for this year alone. The first step to solving this crisis is to have the "credit" card called exactly what it is: a "DEBT" card. There's little doubt that if people were to open their mail and see slick solicitations for "debt" cards, most would take a different look at that small piece of plastic that can change and even ruin lives. Taking the process even further, if people are confused by "debt", let's just call a credit card exactly what it is: an "I.O.U." card. If consumers took out their "I.O.U." card each time they were going to use it, they might be reminded that the charge is not free money, but rather an amount that has to be paid back and is owed to a bank for that purchase. In a perfect world, the lenders and banks would call a "credit card" a "debt card" or an "I.O.U." card. Then consumers might be less willing to owe their futures to high interest rates, late fees and annual renewal charges.