The word credit comes from Latin, meaning “trust”.

Credit has been around for ages and is a part of my everyday live. I suppose the reason I buy on credit varies, but without it most of us would probably never be able to purchase necessities such as a home or automobile. “The nation’s economy depends on credit, the promise to pay later for goods and services used today.” Along with consumer credit comes consumer debt. With the rise in telemarketing and commercializing here in Canada it is no wonder why I as consumer feel the impulse to buy now, pay later.

I was given a credit card when I was 18 years old and wanted it to establish myself in order to have a credit history. I believe I have used my credit card to buy things that I couldn’t afford at the time but felt I would be able to afford at a later date not far down the road. Should my parents not have been able to pay for my college tuition and books I too would have had to take out a loan of some sort to pay for those fees. In the future once I receive my full license and feel more secure at my par time job I plan to take out a loan and buy a used car. This explains why I would use credit and what I would use credit for. Generally in the future I will use credit even more to purchase a house and maybe even a new car.

Does credit really prevent you from enjoying life in the future because of heavy indebtedness? Great question and the answer I believe lies in the person. Not realizing the extent of the consumers’ debt is one of the most common types of credit problems. Denial may play a partial role in this problem, but the lack of education seems to be the largest reason for consumer debt. Money helps you enjoy things you may not otherwise have had the chance to enjoy. To our advantage credit cards are accepted just about everywhere, “Credit card use is up 20% and a large number of Canadians do not know the percentage rate at which the credit card companies charge.”

Does the wise use of credit allow you to enjoy the future because it deliver goods now? Yes, using your credit properly and making the right choices would be the ideal way to establish yourself and create a balanced lifestyle. This although is very rare since the desire to buy things you want even though you cannot afford them is all to common and happens to the best of us. Reality hits when you receive the bill at the end of the month.

What sort of sources of credit would you use and how would you get it established? In the future I would use Installment credit to buy a car, major appliance, or furniture. As well I see myself taking a loan as a mortgage in order to buy a house. I believe I am establishing my credit slowly now with my credit card and my cellular phone which I have had for over two years. By trying to make the right choices and using my credit wisely I hope to stay away from major debt and only use credit when it is necessary to enjoy my life fully without the common stresses that debt can lead you into.
“To blame our current debt woes on the “credit card” would be naive at best and grossly mistaken at worst.”

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