President Obama has announced that he plans to take swift and decisive action to curtail the predatory activities of credit card companies. This means not allowing these companies to jack up interest rates without warning or charge ridiculous late fees that push their borrowers into default. This is good news for many Americans, but it also brings with it a responsibility.
Responsible Spending
That responsibility is to spend sensibly and not treat credit like it is free money. We should use credit as it is intended, to buy things we need now when we can’t afford to pay for them until a little later. The critical idea here is that we can afford to pay for them eventually. Just spending away and hoping that something will “come up” to take care of the bill is not responsible.
Credit Cards and Online Marketing
But what will responsible credit card distribution and use mean for online marketers, who primarily make their money from credit card purchases, often rebillable ones? What it will mean is that these marketers will be forced to make sure their product is worth paying for. As consumers become more fiscally responsible, marketers will have to endeavor to convince consumers that their product is something that they will really need, that will somehow significantly improve their lives, rather than something that would just be fun or briefly interesting to have.
The Last Word on Credit
Credit is a privilege, but one that has kept the American economy running for years and years. Treat credit well and it will be good to you. Abuse it, or create conditions where others can abuse it, and you will pay the price, as the economic struggles of the past few years have proven.
