What would the world be like without credit?

United States
April 12, 2009 9:21pm CST
I often wonder how we would thrive without credit. If you think about how things were many, many years ago when people had to offer something to receive something, there was now way to escape paying for what you wanted. I believe it is when we started placing values on items that were higher than they really are, forcing people to need credit to get the things they need. For example, everyone needs a car to get around, but rarely will you ever see someone whip out their checkbook to pay for a car. When exactly did this happen and Why is the better question. The United States is currently billions of dollars in debt and why? because financial insitutions keep lending money when it really isn't there...and where do they get the money from? The government, who doesn't have it either...viscious circle, hey?
4 responses
@CatGods (4595)
• United States
13 Apr 09
My family and my husbands family don't believe in credit. When growing up we were taught if you don't have the money for it, then you don't need it. Also we were taught if it's still working you don't need to go out and buy a newer one just because some one else has one. We currently drive a 1992 ford ranger, yeah the bottom of the tail gate is rusted and there are some rust spots on the truck bed but the truck run really good and takes us from point A to point B. Even in these economic hard times we don't have any problems paying our bills or buying food. I think allot of the reason why people are in the financial trouble that they are in is because they have the buy now and pay later mentality. And also most people never learned how to be frugal. I can't even remember when the last time was that I went out and bought "new" clothes. When I do need clothes, I shop the second hand stores first. When I need under clothes or shoes, I only buy when they are on sale. For food, we buy in bulk and we try to get that on sale too. We don't rent movies, we borrow them from the public library and we read books too. The only creature comforts we have are the internet and satellite tv. And now that spring is here, we will be doing a garden again. We have a small 12 x 15 plot behind the garage. And when we go for walks in the evening, we take a plastic bag with us and pick up the aluminum cans. We just got a statement in the mail the other day from the utility company that compared to our neighbors, we are using 11% less electric and gas than they are. We feel sorry for those who are having a hard time. But buying and borrowing on credit is never the answer. In the end it will only get a person in trouble.
1 person likes this
@lelin1123 (15643)
• Puerto Rico
20 Apr 09
To tell you the truth I think if credit was never started the Country would be in a better place financially. People wouldn't be buying things that they can't afford because they don't have the money. People would buy things that they need only. They could have a lay-away plan but that would be it. People wouldn't be so materialistic. Having to keep up with the jones.
@ionsquare (534)
• Singapore
13 Apr 09
Hi, There will be less debt around but those who depends on credit will be suffering. The banks will have less business as they will have no interest charges and no late payment charges. Its difficult for individuals to come up with a huge sum of money to buy a house or car. This will not affect me much as I believe in having the amount of cash before buying something.
@stephcjh (32327)
• United States
13 Apr 09
I think it is a viscious circle also. I know years ago, we had better creditr and had a hard time getting a loan. Now, our credit is less than perfect and we have no trouble borroing money. It makes no sense. I do not want anymore dent though and we are trying to pay things off.