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The recent recession has been attributed to many different factors. There are those who believe credit card debt has a lot to do with what has caused the recession to extend as long as it has. Individuals make excuses as to why it is okay for them to make purchases on their credit cards from one month to the next. The trend was started before the recession hit by individuals telling themselves it was okay to purchase beyond their current means as long as they made up for it later.
The problem exists when an individual stops making excuses as to why it is okay to buy now and pay later and start to tell themself it is okay to make payments much later for the things they want now. Carrying a balance while still making purchases causes a downward spiral which eventually leads to a point in time when it is impossible to even pay for something as simple as the minimum payment.
Combine this with the fact more people are defaulting on credit card payments than ever before and it causes interest as to why the credit card processing companies are trying to make it easier to make purchases with a credit card. New technology has been developed which will allow users to use their cell phone as a credit card. While the security features are understandable, it is the shear availability of the feature which causes issue for many.
Leaving the credit card at home has been a solution used by many to keep from spending money impulsively. The new technology will allow individuals to make purchases by simply tapping their cell phone on credit card processing equipment. Since many never leave home without their cell phones, it creates an even greater obstacle for those looking to control their spending.
On the opposite end of the spectrum, companies like retail businesses and restaurants stand to gain from the new technology. With fewer restrictions on the ability of the individual to make a purchase, it causes more revenue. The security features add another level of benefits for the business. For one thing, there will be no way to dispute the purchase. The same security features which help to protect from identity theft also help to eliminate dishonest behavior on the part of the credit card holder.
So, there are good and bad points to the new technology which has been introduced. The technology will require more personal restraint on the part of the individual. It will also require the businesses to invest in new technology to accept payments. The overall benefit or damage of the new technology is something which is not being predicted at this point. While many have an opinion on the matter, there is no way to tell which is right. On one hand, increasing debt is bad for the economy, but making purchases is good for the economy. The new technology has the ability to do both. Only time will tell what the outcome will be.
Resource Nation provides free tools, tips, and purchasing advice for business owners and entrepreneurs in over 100 business categories ranging from phone systems to credit card processing. Whether it’s connecting businesses with local and national pre-screened vendors, or offering easy service comparisons on a VoIP service, Resource Nation empowers business decision makers by providing the information they need to make smart choices.
