Credit:  Then and Now

People apply for credit for many different reasons, credit can fulfill self esteem issues by enabling us to “buy” friends, by getting the check, or paying for movie tickets when we don’t have the money.  Some use credit for a “feel good” activity such as shopping, which is the #1 feel better activity when someone is depressed or sad.  

Some of the most educated people with very good jobs and big paychecks get so far into debt that they file for bankruptcy and fall into a depression.  Credit problems are not a poor person problem or a rich person problem, it is a people problem and many times stems from personal issues.  

As children, no one teaches us about debt, credit or credit cards and how it all works, how it affects us and how it can change our life.  A couple of points I would like to make:

1.  THEN:  People used to be ashamed to file for bankruptcy.

2.  NOW:  Many people suffer from credit card dependency and there is no longer any shame in being in debt.

We can all change this by talking to our children and teaching them how to save money and deal with finances before they are on their own.

Bio

Michelle Dunn is an award winning author and columnist frequently featured in the Wall Street Journal, CNN and Forbes. Look for her newest book being released in May by Wiley Publishing titled, "The Guide to Getting Paid, weed out bad paying customers, collect on past due balances and avoid bad debt, available for pre-order now on Amazon.