When you get a cc, you have as much time as you want to pay them off. When you apply to Credit Unions or LendingClubs, you have a time limit, which of course makes your loan amount higher..no minimum with them. I think 60 months is their max on paying off these loans. Anyway, that is another way we get stuck into paying these interest rates forever with Credit Card companies. Of course that is for people who pay the minimum, which many do.
1-Most people cheerfully decide to do it. In fact they will invoke false constitutional "rights" to do it.
2-Having no balance means no interest--possibly annual fees but well you'll have that.
3-An unsecured fixed loan and an unsecured credit card do charge higher interest then a collateralized loan due to the nature that they take the collateral if you do not pay.
4- Most people who decide to quit using credit have about a 18-36 month difficulty, then can actually start paying cash for everything.
Yes, and everyone needs a card for certain things..hotel, renting cars. Paying cash is not always an option, which is too bad.
No one is saying you don't need credit cards. But DON'T use credit as a way to enhance your lifestyle (i.e., living above your means). If you only charge items that you can PIF at the end of the month all this rate jacking and CLD will have no effect on your financial life. A PIF mentality is something you must get in the habit of.