There is always a karmic obligation in everything. The credit culture proved this and probably revealed more destructive effects in this decade than ever before.
Buying something that is more than your income is like insisting on carrying a load bigger and heavier than what our bones could bear. It's simple physics taught in school. Basic economics shouldn't be any different, don't you think?
I never really understood the logic behind the credit card culture.
Loans I do and it's sensible because of the relatively large sum of money. But credit cards I don't. I maintained only one but only for the purpose of emergency use which happens rarely (I hope) and annual online payments (i.e. URL registration, webhosting, etc.).
I am guilty of saying that financial institutions successfully convinced us to use pseudo cash because they spent a great deal of time investing on the idea that we didn't have money in the first place.
Of course the intention is good. But when the day of obligation comes, where will you get that dough to pay the bill? Wait. I think the right question is HOW can you pay the bill? You didn't have it in the first place remember?
Satiating your wants is one thing, buying on credit is another.
So now after a long time, man had successfully institutionalized the habit of credit not realizing that the risk can easily amplify due to one's inability to manage personal finances.
Financial wealth isn't just about a fat bank account. It's about financial literacy exercised religiously and faithfully.
But then many of us still insist (strongly). Ah the convenience of credit. That buying power everybody is enjoying for a time - and a long one at that. Yes, it eliminated complaints and short term problems but wisdom is now telling you that material satisfaction can only be temporary.
America is paying big time for being stubborn. The rest of the world is sharing this problem not because they had to but because it's a built-in karma. Meanwhile let's learn to listen more what this is trying to tell us.