logo image

The current economic situation Essay

The current economic situation is a testament to the pitfalls of people carrying too much debt. Even as lenders are receiving millions from the economic bailout plan to save their companies, they still continue to offer credit to risky people. Why? Because they know that they if someone defaults on a loan, they can not only use that amount as a tax write off, but can cite these losses as a reason for increasing interest rates, penalties and hidden fees for their current customers. Aggressively marketing credit to those who are least able to afford it may be financially savvy, but is highly unconscionable.

College students, who are more than likely cash strapped and unemployed, are lured by offers of credit cards as an easy fix. It is easy to pull out the card and spend “pretend money” to satisfy instant urges. Many students end up starting their post-graduate lives deeply in debt. I read one study that claimed that 1/5 of students a 4-year universities carry debt of $10,000. 00 or more. Marketing to retirees and those on fixed-incomes is just as ruthless. A responsible person might be able to use their credit for necessary things, but most people are

Need essay sample on "The current economic situation Essay"? We will write a custom essay sample specifically for you for only $ 13.90/page

too easily caught up in the fantasy of having whatever they want instantly.

With ever increasing fees and hidden costs, retirees see their savings dwindle, and those on fixed incomes—once they reach their spending limits—will find themselves spending just to lower their debt, unable to buy necessities. People who have declared bankruptcy have declared bankruptcy for one thing: they are unable to pay their bills, whether by circumstance out of their control, or a lifetime of bad money management. Offering more credit to them doesn’t help change their habits; it only makes it worse. So while the banks may become richer despite risky lending practices, the people they choose to market to become poorer in so many ways…

Can’t wait to take that assignment burden offyour shoulders?

Let us know what it is and we will show you how it can be done!
Sorry, but copying text is forbidden on this website. If you need this or any other sample, please register

Already on Businessays? Login here

No, thanks. I prefer suffering on my own
Sorry, but copying text is forbidden on this website. If you need this or any other sample register now and get a free access to all papers, carefully proofread and edited by our experts.
Sign in / Sign up
No, thanks. I prefer suffering on my own
Not quite the topic you need?
We would be happy to write it
Join and witness the magic
Service Open At All Times
Complete Buyer Protection
Plagiarism-Free Writing

Emily from Businessays

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out https://goo.gl/chNgQy

We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy