Since the concept of using money was first introduced since ancient times to replace the barter trade system, importance and popularity of money went through a rapid growth. The role of money had currently evolved to the point that different country have own unique currency value, and most product are only purchase-able with money. Due to the risen role of money in human’s life, certain services regarding money to help human beings rose. Few examples of the services are bank deposit, withdrawal facility, debit services, and credit facilities. Credit facilities provide services that allow users to spend “future money”, which means the users would be able to enjoy the fruits before planting. Various choices of credit facilities are widely available in human’s life due to the high demands, easy profit, and its support in teaching one to learn managing daily finance.
There are many people who demand for the credit facilities due to its convenience. Credit cards is one of the credit facility services that widely accepted by users. By having at least a credit card, users can avoid the risk of holding excess cash which does not affect the usual purchasing rate. Besides, credit card users can also purchase extremely expensive item and only need to pay back by installment. Study shows that even 76% of undergraduate students from a college hold their own personal credit card (Federal Reserve Survey of Consumer Finances 2012).
Some businessmen love to provide credit facilities for its high and easy profit. For most of other types of business, profits are earned with trading of products or services with money. However, credit facilities such as money lending centre gain profits from interests of the loan. Therefore, unlike other types of business, credit facilities need only money to earn money. In addition to that, credit facilities can also gives enormous profits with wise operation. For example, if a money lending centre managed to cooperate with a gambling company, the money lending centre will have more regular customers and the profits earned will boost rapidly. As stated by supporters of casinos in Missouri, roughly 71 percent of casinos from all 14 states of the country provide money lending services (Jaco 2013).
Furthermore, credit facilities like using of credit card also serves the advantage of building the user’s financial point of view and learn the way to manage one’s finance well. “One strategy that can work to keep you from overusing your credit cards is to put them in a place where they are not easily accessible. If you have to go through some trouble to get to the cards, you will have time to reconsider the purchase you want to make” (Pennington 2013). The above statements hinted that credit cards are easily overused if without paying any attention. Hence, a credit card user is forced to learn about ways to manage the finance, or the user will get into financial trouble due to the overuse of credit card. During the process, the habit of...