Is credit leading to the downfall of society? That is a good question, and the answer is not a simple one. There are many good things that come with having credit, yet there are also ways that credit is a bad thing. How a user handles credit will usually determine what the answer to that question is. However, could it be argued that credit is tearing society apart?
Credit was once seen as something to avoid. People paid in cash, or got a loan only if they could afford to repay. At one point, Congress made credit card interest a tax deduction to convince people to get a credit card. After awhile, the use of credit skyrocketed as people realized that they could get more using credit as opposed to saving and using cash. This has changed the way people view credit.
When times are good, it is easy to obtain credit and repay your debts. However, when the economy is poor, it is harder to get credit as banks tighten lending standards. When people are so reliant on credit, it makes it hard for anyone to function. It is like taking drugs away from someone who is an addict. You are going to see people who have no clue what to do and their lives are going to be shattered as they go through withdrawal, or until they get more.
It can be argued that people use too much credit and have spent beyond their means. Credit is partially why the US is in such a debt crisis right now. However, is it the fault of the people, or the fault of the lender who gives the loan? Banks make a ton of money off of lending, and creditors make a ton of money off of people who take out loans. Collection agencies don’t just call to see how you are doing.
Our financial system has basically turned into a big score. If your score is high enough, you can get whatever you want. If you have a bad score, you can have better luck winning in Vegas as opposed to getting a loan from a bank. This can cause people to turn to crime or other unethical means to get money. Getting a job can be hard if you don’t have good credit. Imagine being unemployed for failing to repay a few bank notes.
Will credit eventually take out our society? It could, but it would seem that banks and lenders will do whatever they can to get money out to people if push came to shove. Even if it is harder for some people, there will always be a market for lending money if there is a profit to be made from it. Perhaps that is the real issue to all this.