Summary:
This article is about a Marketing Professor named Priya Raghubir talking about credit cards. Raghubir says that credit card removes the “pain of paying” which means that consumers did not have to pay purchases by cash, but with credit. He also said that credit card could also be bad because they can cause people to underestimate purchase cost when buying many things at once. Raghubir also said that credit cards cause people to become vulnerable to huge amount of debts. In the end of this article, Raghubir stated that credit card may seem to remove the “pain of paying”, but it actually increased it.
Connection:
The connection between chapter 14 and this article is bank credit card (section 14.2). In this article, it states that people use to remove the “pain of paying”, but actually increase it. It somewhat connects with this 14.2 because people not only had to pay back the credits they had used to purchase goods with their credit card, but the bank also charges a annual fees and interest fee to cardholders; therefore, the “pain of paying” had increased for the cardholders.
Reflection:
I think credit cards are very useful because it helps people expensive goods without them carrying a whole bunch of cash. Even though it is very convenient, people still have to watch out for how much they are spending with the credit card or else they can get into a massive debt. That is why people should pay attention to their monthly credit card bill to get a general idea of how much they are spending. It is always good to remember not to over use credit cards.
4 comments:
I agree, credit cards are really convenient. You can buy almost anything with a credit card. I think using cash is better than using credit cards. When you use cash you can actually see how much money you are losing, but when you use credit cards the amount of money you pay doesn't feel as much because you're just punching in numbers. Using a credit card can cause big financial problems, since the interest on credit card are really high. I think if you're bad at managing your money you shouldn't use a credit card. I think you did a create job summarizing the article.
At this time in age, it is very easy to get access to a credit card. Even a student myself is able to with the exception of a parent co-signer. I believe that many people will rely on their credit cards too much and that is where they will fall into trouble. Credit cards also do benefit us in a way for "buy now, pay later" type of speech. Typically, credit card companies try to make us forget about the high interest rates by marketing on special offers or promotions. Some credit card companies will offer bonus Air-Miles or Mastercard giving people a chance to have a balance of $0 on their next monthly bill.
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